Tisha,
I like to use the traditional transfer methods a lot. Of course I use the precut stencils but I also make many templates out of cardboard for patterns I find in books or I designed myself. For marking I use watercolor pencils or the needlemarking method. To be honest, I don't like the water soluble pens - some of my quilting friends here had some problems with removing them and I really don't want that on the solids I work with.
I work in a hoop on a floor stand and for me it is perfect that way. I can't do even and small stitches without a hoop - but this is just my way of doing handquilting.
I perfer a John James Betweens #11 - they don't bend and the nickel cover stays for a long time, even in summer when the weather is hot and my hands are sweating.