IMO, the biggest mistake a new jugger can make is to try to 'fight' the catfish into the boat. I couldn't begin to say how many big cats I've had pop off the hook when I applied just a few ounces of pressure. Believe me, they are often hooked very lightly. So, I do my best to 'finesse' the fish in by pulling the line just with my fingertips; if the cat makes a run, I let it run, and chase the jug down again. But, you need to be very careful not to let a hook get behind your hand, or that sudden run can jerk a hook right into you. Where I usually jug, my top hook and bottom hook are only 6' apart, with a third hook halfway between; that allows me to hold the line above the top hook while netting a fish on the bottom hook. When I put more hooks on the line (for deeper water), I attach them with trotline clips, which I can remove as I pull in the line.
The type of hook depends on several factors. Depending on where and how they jugfish, some folks lose some jugs on just about every trip, while others almost never lose one. Obviously, the expected lifespan of the jug is important when considering how much you can invest in each jug. For years and years, I used a big-eye trotline hook almost exactly like the ones I used on my trotlines. The only difference was that I used stainless hooks on my trotlines, and non-stainless on my jugs. A couple of years ago, I changed over to kahle hooks for my jugs, and did notice a little better hookup ratio. However, the size of the eye is much smaller, unless I spend about three or four times as much to mail-order big-eye kahles. Also, the kahles seemed to rust much more quickly than the non-stainless trotline hooks. So, this year, I switched back to using plain old big-eye trotline hooks on my jugs. I mostly use cut bait, and find that 4/0 or 5/0 hooks work best for me. The hook needs to be large enough so that the bait doesn't 'jam up' the area between the point and the shank, because that will cause a lot of missed bites.
I use 100# test nylon line because that's strong enough to pull a hook or sinker loose if it's going to come loose, but not so strong that I can't break it off when I can't get it loose.