This is the setup that I use and it works really well.
http://www.getbentsportfishing.com/h...libut-fishing/
There is also the 3 way swivel Bounce Ball setup that also works well.
http://www.kayaksportfishing.com/tac...or_halibut.htm
I have used this but without the dodger on it. Live bait or plastics work.
Don't worry about using larger baits they work and they work well.
They can be caught as shallow as to feet of water and even shallower, to 50 feet or deeper. Most of the Halibut I have caught have been in the 10 to 80 foot depths. Bait of choice Sardines and Macs. I know squid, and anchovies work well also. Make sure your bait in on the bottom and that your drift is not too fast.
Have fun.