Mike,
I dug out the old VHS tape that it is recorded on and I filmed my television showing the set-up:
http://www.youtube.com/watch?v=uOlI9gy-sPo
Hopefully you get the idea of the set-up.
I'd use 3/8, 3 strand
nylon rope
As far as losing an anchor because it's stuck, look at the shoreline where you are about to anchor and if it is made up large rocks with lots of crevices, try to determine if where you are it's the same, think twice before dropping your anchor there.
Any questions, just ask,
Scott