I feel that there have been some really good advice given so far in regards to knot used, line, rod/reel, etc.... In the end all the different rigs are essential to being a well rounded bass fisherman. They all have there uses and they can all catch Fish. I commend you for asking about the drop shot and wanting to learn more about a technique that you have not fished.
My 2 Cents: I have actually been throwing a drop shot recently and was just like you about a month ago...I decided to take the plunge and just fish a drop shot exclusively so I could learn it. Now I don't fish from boats to often, I will be more bank fishing than anything. The drop shot can still be a valuable tool when casting from the bank.
My Setup: 6'6" Medium Spinning Rod, 12lb braid with 8lb mono leader. I usually tie on a 6-8ft leader. As for the hook, I currently use a size 1 gamu drop shot hook that is tied on with a uni-knot. The tag end is about 15" and I use the 1/4oz cylindrical drop shot weight.
-Options...you can mix this setup however you want...I have seen guys use 2/0 EWG hooks with 1oz bullet weights pegged on the tag end of line....You can just use straight braid or straight mono...there are endless possibilities when it comes to the different elements of the drop shot. In the end, you can either use what you already have on hand, or just go out and buy some simple tackle to set it up.
-My Experience: After exclusively fishing with the drop shot for a month now, I have really enjoyed it. I have caught a good number of fish on the setup. Since I have fished from the bank, there really isn't any vertical fishing with the rig, but it has done a great job of suspending the bait, bringing it to the bottom, or giving me the control to give the bait as much "action" as I want.
-Tips: experiment with the different plastics you can put on a drop shot. Everyone will tell you to use a trick worm, robo worm, senko....but throw on a creature bait like a craw or lizard, use minnow style baits, tubes, grubs, pretty much anything can be put on a drop shot. Below is a picture of the bait I threw on a drop shot yesterday and caught this 2.5lb bass...it also caught 4 other smaller bass all in about 45min: