Circle hook / fishing for bass question

[RIfoosball]

Hello out there. I just discovered this forum, and am eager to get some input from you experienced fishermen(women) out there. I'm in RI and have been fishing in the bay and am not that experienced. I found a couple of spots where I wade in at night, cast out as far as I can with some chunk, and then back up to shore. I use a 2oz sliding sinker to a barrel swivel, and then a 2 to 3 foot flourocarbon leader. I was told that the circle hook was the best hook to use. I was told that it generally catches the fish in the lip, and is easier to get out for a tidy release. I get several hits a night, but.......

the other night, as an example, I feel the fish hitting on the bait...I put my tip down to allow it to take it and wait a few seconds until I feel like it's got it, then I pull the tip up and set the hook. I can feel the fish on for several seconds as it runs and then I lose it. I reel back in and the bait is still on the hook. The other night I managed to land one fish out of five good strikes (again these strikes it definitiely felt like fish on). This doesn't seem to happen with any other type of hook. By the way, I'm using Gamagatsu hooks.

Questions:
1) Advantages/disadvantage of using the circle hook?
2) What am I doing wrong?

The funny side to the other night is this.....the fish I caught.....well, my hook actually ended up hooking into a snap swivel, which was attched to a hook, which was in the fish's mouth, which was not mine!! Someone's line had broken above the snap swivel and I got lucky when setting the hook; it apparently came out of the fish's mouth and hooked on to the snap swivel.

Yeah, I know, I'm very good yet, but am eager to learn.

Your help is appreciated.