My original crock pot never got very hot on the outside. My most recent one gets quite hot - it melts the butter in the dish on the counter if it's too close. I thought there was something wrong with it until I was told that the newer ones get hotter quicker - because of concerns over bacteria growth. Regardless, we've never gotten sick from eating stuff done in the crock - and probably 90% of it has been done frozen. (Maybe luck, maybe it's not as bad as they say. Who knows?)
When I started doing things that weren't frozen, I stopped adding the water - but decided I liked the extra broth, so now I add water to everything.
Re: lifting the lid - I don't think that has anything to do with the meat turning out dry. You're not supposed to lift the lid because the heat escapes & it winds up taking longer to cook. I've found that the cheaper cuts of beef are actually not as dry as the leaner/more expensive cuts. Obviously the fat content has something to do with it.
Deb
I forgot to ask earlier - do you have a stone crock or another type? My sister has a metal/teflon pan that sits on a tray & calls it a "crock pot". However, her stuff never comes out like mine. I think there's a bigger difference between the two than you'd think.