Frustrated fishing. Need rod/reel help

[cantfish101]

Here are some images of the hook and lure I'm using. Also an image of how the line looks being pulled off the reel. I also attempted to do a Texas rig, but I don't think my hook is big enough since I couldn't put it in the base of the tail like I saw in the video I watched. I realize I have the hook in backwards after re-watching the video.

http://www.youtube.com/watch?v=KwTwpge-hec

I plan on fishing on a lake, do I really need to do a Texas rig or does it really matter?
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