The few times I've been ice fishing we used special ice fishing line, although I'm not sure what's special about it. Can't remember the brand either but no visible fraying after hauling a few out.
I'm not sure what those guys were using as bait but it was probably something like power bait or another highly visible and heavily scented type of bait. The guys I go with dump a bunch of bait down into the hole (mixture of corn and old power bait) then hang their baited hook (usually baited with a worm) right above it and start jiggin when a fish comes by. I don't get out often as you need a fair amount of gear to make it worth doing but I never pass on an opportunity to do it.
@R93 I think you're talking about Pickerel, which looks a bit like a small pike eh? They're native to the Great Lakes but they were introduced into a few of our local watersheds in Nova Scotia and they totally wreck the trout population to the point at which they have to be stocked each year. They're great fun to fish though, heaps of fight in them!
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