Answers:
Sounds slang to me. If you are calling people "JUG" it might just be in your area, and being slang, spelling shouldnt matter none.
Sorry, I thought you meant how do you spell jug like a water jug, milk jug, something like that. I shouldn't have said that, I'm sorry. That was plain mean of me, and I really should've been more sensitive to what you were trying to say.
Anyway, about your question, if you call people like that a 'jug' then spelling shouldn't matter. Spell it how you want. Unless you're mistaking it for a thug.
I think you mean a "thug." Never heard the word "jug" (like a jug of water, jug-band music, etc) used to describe a person.
You can also try the Urban Language Dictionary (just google it) for all the latest slang.
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