I cant beat Jug. I have tried about 4 times and Im running out of supply points. I always get to the Jug part but he kicks my ass. Does he have a weapon that shuts your VT off. I know that I was no where near the trip wires but he shot me and my VT shut down and it was over in seconds.
Tell me any tips that you have.

Suffering from a mental block against the Jug myself, I dont really have much advice t ogive.
Remember to buy 2 or maybe even 3 supply containers before that mission, and make sure you are all fixed up before you take on the jug.

I found that the best way for me is to knock him over with a rail gun and torch him when he tries to get back up.

Check out http://steel-battalion-clan.pippin.us/walkthroughs/mission-10.asx for a demonstration on how to do it, and visit http://steel-battalion-clan.pippin.us/ for a typed walkthrough of the mission.