I have hardly ever used them in deep water (Live ), but of the beach have landed some nice Mulloway and Tailor. Usualy on a snelled running rig with the head on the last hook.

On the boat in shallow or deep water, while i'm drift fishing. I hook all my live bait in the lip, or thead a bait needle through the eye socket and attatch the hook with a rubber band. Both these ways the bait will swim as you drift and stay alive.

Check out some youtube clips of how to rig a live bait, there are some realy good ways of doing it that aren't too hard .

Some of my best fish have come from a live Sand Whitting, Herring, and my favorite livey is a small King Wrasse.

Cheers .Grant 

Probably better off using live herring, they last a lot longer and are much more easier to catch. I hook my llivies just behind the in the "meaty" part. I have tried hooking them through the lip as Grant said but they dont last as long. I ballooned out a 35cm live skippy yesterday while catching pinkies and it got snaffled by a decent sambo. Its a great way to fish

 Hook above the lateral line, runs from head to tail just below top of fish.

used them off the gold coast in 100m.....landed massive kings to 30kg.....even sent down live tailor (size....) and resulted in hooking things we couldn't bring up