The only time you don't want to use a lens hood is if your camera has a built-in flash. It could black out the bottom half of the pic. Otherwise, there's no reason not to have one....they only help.
A rubber lens hood (which is usually or always circular as far as I know) is the least effective shape for blocking out nonimageforming light, since the actual image frame is rectangular. A better shape lens hood would be a "tulip" shape or (the best, but least convenient to carry around) a rectangular shape. For lots of information on lens hoods, check out this link: http://www.vanwalree.com/optics/lenshood.html