I use cheap mono for backing, some guys use dacron...
You can get all kinds of floats at centerpinangling.com.. Riverwoods are decent, lots of others kicking around as well.
As for hooks, it depends on the size of the bag (at least for me). Personally I don't run any of the small silly stuff (size 14, etc)... Usually thick wire # 6, 8 and 10.