First question. How many points are you planning to build your army for? That will do much to give us a framework to give specific advice.
Skaven slaves are usually in most builds as tarpits. Run them five wide to maintain Steadfast while you lock down an enemy unit for two or three turns. Your unit will die, but it only costs around 100 points if that so no big loss. Also, you can shoot into any combat that the slaves are in due to Life is Cheap. As for models, I used the skaven with no apparent armor on the back/shoulders and gave them hand weapons. This makes them look like lowlie slaves in rags with knives.
In larger armies, I run my Clanrats in blocks of 35-40 including any characters I put in there. Again, I run them five wide to maintain steadfast while letting my characters deal out some damage. They die so fast that running them in hordes really isn't worthwhile. The exception is if they're pushing a Bell.
I'd advise against the Skaven Battalion. Get more rats from the IoB set. You can find these on eBay for around £20 or so. Better value as you get basically everything the Battalion offers for less money (except the plague monks).