Parker,
I, in no way consider myself an expert at hooking chums on the bug rod, but I have managed to entice a few of them to take the fly. I also use an 8wt. rod with a 13ft. type 4 or 6 sink tip, depending on water conditions. I use a foot long piece of 30lb. mono with a loop tied in one end, and an albright knot attaching it to my sink tip.
From there, I use about a 3 ft. section of 15lb. mono for tippet. 15 probably sounds a little heavy, but the extra abraision resistance saves on flies. I generally use either a rabbit hair, or marabou fly, usually tied with some cerise, purple, or chartreuse.
I typically cast either perpendicular to the current, or slightly downstream. I hold the rod very high at first to prevent the surface current from creating a belly in the floating section of flyline. Once the line is at a 45 degree angle downstream, I lower my rod tip to the surface of the water and point the tip directly at the line following it downstream.
As you feel the current pull start to ease, slowly pull your rod tip upstream, creating an arc in the flyline. This is what they call swinging the fly. It is very effective for steelhead, and chum as well. My flies are not weighted, the weight of the sinktip, and the short leader usually will get the fly down to where the fish are.
Once the fly has swung directly downstream of you, wait a few seconds, and then give it a couple of small strips. Also, after you cast, while your getting the line 45 degrees downstream, is the time to take a step or two downstream. This also helps the fly to sink into the strike zone.
Chum that are stacked up are inevitably going to be foul-hooked. Even with the best intentions, when you see your flyline tighten up, it's hard to resist the temptation to set the hook. I believe it's what you do with the fish once it is landed, that sets good fishermen apart from the snaggers.
Parker, I hope this helps a little bit, and good luck catching those dogs. 
Mark
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A day late and a dollar short...