Malc,
My knowledge is limited by the fact that I don't do too well on the well on the "bagging waggler" as they're called. In fact I'm pretty poor at it. Revive this thread in the week when Graham (the Editor) is awake and he might add a bit more, he's quite good with them (grrr!)
However, the general idea is to have them fixed on your line, pretty heavy line too (6-8lbs), and a bait anything between 18" and 6 feet below. You may need a couple of small shot just to help sink the bait.
Bait is normally a small 10mm boilie, but no reason why you can't use a good sized pellet (Sonu S-Pellets or Mistral Halibut Hookers) or just a big flake of bread if it will withstand the cast.
Groundbait should be a fine one that breaks easily and remains suspended for a long time. Sensas 3000 Surface seems to work well, but one of the bailiffs on Clattercote simply uses mashed bread with a little red colouring in it. Powdered milk seems to be a good additive
Main thing to remember is, buy really good quality bagging waggler floats. So many simply break with the pressure of squeezing the groundbait onto them. Korum make some good ones and Dinsmores have just brought some new ones out that utilise their feeder bombs and have fibre glass stems that are very strong.
Hope this helps.