I just bought some cool 1/8 oz, finesse jigs, and was wondering really when should i use them as opposed to a normal 1/4-3/8 oz jig. I know that LBH uses these 1/8 oz jigs, should i use them in deep water, do they make good flippin lures?

A little finnese jig is always a winner in high fishing pressure situations.  I've also found that the smallmouth like it on those deep rocky points.

I rarely use anything but a 1/8 ounce. I catch tons of smallmouth with those jigs.

I agree i mostly only toss 1/8 to 1/4 anymore

I use spidergrubs (T-Rig or Jighead) instead of jigs and they work great for finesse applications as well.  Same profile, slower fall, and something slightly different from the other 1000000000 jig throwers.