First, you need a fishfinder or countour map to show you where the deep structure is. You should be dropshotting around sunken humps, rock piles and other structure. A fishfinder would also be helpful in showing you what depth the fish are holding.
When I drop shot I use a flurocarbon leader as the fish are going to get a good long look at your bait. You can use a barrel swivel to connect your leader to your main line, which will also allow your bait to turn.
Get some drop shot sinkers and octopus hooks. Choose your depth and rig your hook using a palomar knot. Attach the dropshot weight to the tag end of the line (the length of the tag end will be your depth from the bottom to your bait).
Many rod manufaturers make "drop-shot" rods, but I just use a 6' 6" medium spinning outfit.
There are many different kinds of plastic baits you can use for dropshotting. I believe that you should downsize your dropshot baits. I like to use a small YUM leach. JD Baits (site sponsor) makes a nice little finesse worm that I also like. I just hook it through the nose.
Just drop your bait to the structure until the sinker hits bottom. Keep your line tight (you can have a little slack) to the bait so that it doesn't sink. At that point you want to impart some moevement on the bait. I like to shake it gently by shaking my rod using my wrist. You can also jig it vertically, but keep the jigs short.