You have probably read this already, but I had saved it awhile back for future reference:
Brew Your Own: The How-To Homebrew Beer Magazine - Techniques - Wood Chips & Adjusting Gravity: Mr. Wizard
"Sterilize the bag, chips and weight with either steam or hot water. I chose to fill my barrels with 195° F water and let the barrels sit for several hours prior to use. Either method will work for sterilization. Some sanitizing solutions will damage the wood and perhaps flavor the beer. Burning sulfur is one method of sanitizing barrels used by winemakers, while using a dilute solution of KMS or Campden tablets is another. I like hot water because there is nothing added to the barrel other than water."