Steelhed -
Jig fishing is like any other method - you have to fish it with confidence and consistency. Next time out, leave your other hardware, and force yourself to use jigs all day. If you catch fish - you'll love jigs - if you don't catch fish - well that's fishing, and you should still give them a chance...
There are a lot of threads on this forum talking about favorite colors. Pink and white is very popular. I've had luck with small (1/16 or so)pink and small black jigs in clear water.
As for what water to look for - I'll try anything once - as long as I think it holds fish. Seams are very good targets as are slower deeper pools. But any water that holds fish can be fished with jigs, you just have to work on presentation. I don't like to use jigs in water less than 3ft or more than 10 - I'll change tactics a little in those conditions (but I know others that will do it). Fast choppy water can be good too. The chop gives the jigs great movement (especially if tipped with a pink worm).
As for depth, generally you want to be hitting the fish in the face or just above it. Since they tend to hold on the bottom, well, that's where you want to be. But I know alot of guys that are successful that fish 3 to 5 feet fixed below the bobber - no matter how fast or deep - and do really well.
Anyway, the best way is to just experiment. Try different types of water, different colors, depths, and different types of jigs and you'll find something that they like and that you'll like...
Good luck!
-Chad