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When live-linning baits like mackeral or herring, you want to cast and work them, really you want to let them work for you... With mackeral use a 6/0 live bait hook behind the dorsal and same with herring or even better through the nostril with herring. You need to gingerly cast them out as too much pressure will send the fish in one direction with the hook staying close. You really aren't using any additional weight, therefore no fish finder rig... Then you let them swim on their own. You'll know things are happening when the live fish starts getting all skittish and frantic...
Eels are a hooked with a 6/0 in through the mouth fairly deep and down through the lower jaw. Many people prefer to come up through an eye socket but I don't like that personally...
The tough thing with live linning is when to set the hook. Usually, the longer you let the bass run with the bait in it's mouth, the better hookup you get. The down side is that you increase the chance of a gut hook which isn't good for the fish. As far as circle hooks, I use them when fishing cut bait but have not tried them with live macks or herring yet. I do not like them for live eels....
Hope this is a start...
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