I finally went out and tried this bait on a Dropshot rig. Did very well.Using the 4 inch version,didnt catch anything huge though.I was very pleasantly suprised to see how effective these were on a Dropshot,especially since this particular bag had been in my boat for over a year and each worm had all but lost all of its color.

Question I have now is whats the better way to rig these  baits. With the "Cut tail" pointed up or Turned down?

Is there really any difference in action and results depending on how the tail is pointed??

No, it doesn't matter.

Try the Kut Tail on a Shak-e2 jig, too!

8-)

It probably doesn't matter, tail up or tail down, but I always rig it tail up.  The important thing to remember is that its a sinking bait, as opposed to something like a Roboworm, which is a floater.  There is a subtle difference in the way each bait can be worked.  The Cut Tail worm responds better to more rod input, where as the floating worms are a "less is more" kind of thing.