Capt Rod,
We use squid all the time in the Raritan/Sandy Hook area.......I use freash Squid. We buy the Squid at the Chinese Grocery, and cut it into 5-8" strips and fork the tail to give it more action.
As with any bait sometimes it works great and sometimes it will not be touched. Generally fish it with a bucktail hook colored either white or chartruse......
Biggest fish caught on squid last season was a 9.2 lb fish caught off Elberon.....for the big ones we usually use either peanut bunker, snappers, or rigged scented artificial.....