With a 1/32oz jig, You might try taking a pair of pliers and "opening" the hook a bit. Bend the hook downward just past the body, then turn the tip out to give room for a set of lips.
As far as setting the hook, I don't give them buggers any slack. You feel a thump, set that hook! It only takes a flick of the wrist. Kinda like flicken a booger at someone, only use your wrist instead of your finger.