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Depends on the target species. Doormats some like to use large wide gap hooks. Stripers or weakfish you should use a 6 or 7 circle hook. You can also use J hooks but it's not wise to dead stick them because the fish will swallow the hook and you decrease the chance of survival for shorts. There is a very good article in I believe the Sept. SWS mag on livelining eels. I've been fishing with eels for several years now and have used different types of rigs and I'm still trying new ideas. I'm sure there will be others to offer advise too. I always get good advise from the people here.
 

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I am no takle expert. I do have success taking a simple leadhead jig and hooking the peanuts through the eyes. 3/8 or a little bigger.
Very basic, but it works for me in my shallow water spots.
 

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From a boat drifting, would hook them forward, from the sods "still" fishing, would hook them aft. Just avoid the lateral line (back bone). Where ever you decide to hook em be very gentle as they cannot take much abuse. I like to under hand cast them from the sodds (aft hooked) on pompano rigs with 4/0 J's smooth shanked (no swallowing) & keeps them below the blues at this time of year ;) . Like Vitalsigns told it "depends on your target" & how/with what you fish.
 
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