I use Fireline on all of my river rods (save for spinning). I like it because it has a smaller diameter so you can fit more of it on your reel. For float fishing, I like it because there is no stretch so it's better for long distance hook sets. For my bottom bouncing rod, I like it because it's so much more sensative. A buddy of mine described a fish biting as the same feeling as running over a brick with a lawn mower.

As far as cutting into the spool, before you put the super line on, put about 20 yards of mono on as backing and that will eliminate that problem.