I will go through and try to answer your points.
1. You really cannot bait rabbits.
2. Over penetration is possible but not a major concern- a head shot will get them.
3. Other tips? Well you need to make sure if you are stalking then be very quiet (obviously). If you are doing stationary hunting, make sure the wind is blowing so that your scent isn't blowing in the direction of the burrows.
Hope this helps!