Ran across this video on MetaCafe's website and though it was rather an interesting technique. I can see though where it may be illegal to do in some states. The way this gal shows it you have little control over retrieval when you hook one. A secondary line tied to the boat would solve that. I can see that if the fish was huge it could swim away from you for quite awhile before it got tuckered out.
There are some commercial jugging setups available. I would use a white jug so it could easily be seen as opposed to clear 2 liter bottles. For night fishing add some reflective tape so you could find them with a flashlight. I probably wouldn't use no more than 2 hooks. The actual line length and weight strategy would vary depending on the pond or lake depth...heck you could even tie a brick on the end if you wanted. Don't think I would try this in a river unless it was a lazy river. Chasing your jugs down stream might be rather dangerous.
From what I've read so far, jugging is mostly used for catfish. Catfish give off a scent to alert other fish of danger so you have to treat them gentily until you get them landed or you will scare off the other takers.