Potatoes as a fermentable are quite compatible with all grain brewing.
First, pick a starchy variety, rather than a waxy type. The latter will work, but the starchy varieties work faster and more completely.
Potatoes add distinct sulfur related aromas and flavors to beer. Somewhere between "fresh turned earth" and "French Fry." In other words, the beer is gonna taste like a potato.
The starch in a potato is pretty similar to malt. It gelatinizes (the phase where it's available to enzymes) at a low temperature of 140F. Similar to malt, the amylase enzymes will work from 140 to 150 F. Used with high diastatic power malt, you can go as high as 50% of the grist.
How you prep the potato is pretty wide open. Just grating it and adding it raw to a mash is simple and works. You can also bake, boil and smash it or run it through a ricer. Using potato flakes is another possibility with the advantage of being gelatinized, consistent and dry weight.
The Russet varieties have the highest specific gravity, especially ones that have been allowed to mature in the ground. Most varieties will lose a little of their water weight if stored in a dry room. Just be aware that gravity can change from potato to potato and even one end of the spud to the other.
BeerSmith want to calculate the gravity based on one pound of soluble dry weight diluted into one gallon of water. Most potatoes have about 15 to 25% dry matter (basically starch), which is in the 1.070 to 1.080 range. You then have to take that number and divide it by the weight of a gallon of water (8.3 lbs).
80 / 8.3 = 9.6 or a potential of 1.0096
The water contribution of potatoes isn't trivial. If they're in the 20% solids range, then they're 80% water. At that level, 5 lbs of spuds can contribute about a half gallon of water