A 5/0 to 7/0 hook is good for sailfish, if you use circle hooks remember to open them up a little. you can slow troll live baits to good effect, http://www.squidoo.com/trolling-basics
(while not specifically for sailfish live-bait trolling is the same with any species). You can also troll artificial lures for sailfish, though to be honest if it is your first go-around use live bait.
Live bait can be anything that swims and is small enough for the sailfish to eat. Goggle-eyes are the favorite bait of tournament fishermen, but mullet, hardtails (blue runners) or any bait fish in the 6-8 inch range will work just fine. Hope this helps-