The plant has a few good roots, so it should be okay. Yes, you're doing the right thing by repotting. Be sure to dust the cut roots with cinnamon before putting them into the new medium. The pot you choose should just hold the roots.

You might want to consider using the skewer method of watering. I believe this method is outlined in the FAQ's.
Be sure the plant is getting enough light. Without enough light the plant won't function properly and the roots can rot.

Good advice from orchid 126. For a phal with just a few roots, a small clay pot and sphag is a good choice for reviving the roots.

I also recommend you use Hormex or Dyna-Grow KLN (either one). I think KLN may be easier to get. Both are liquid rooting hormones that you dilute and use in the watering. In one month, roots watered several times with either of these show a big improvement.

About watering, the skewer method works for some people. I can tell by lifting the pot.

But the point is, *don't try to water on a schedule*. Wait until the medium is barely moist before watering. Watering too often or watering too seldom will damage roots. So use the skewer or learn to tell by lifting the pot or sticking your finger an inch or so down into the mix, and water only if *almost dry*

To get the best out of your beautiful phal, read up on them. Below is the url for culture notes at the Canadian Orchid Congress. Also check out the culture notes at Big Leaf Orchids and Bedford Orchids. At Big Leaf, click the tab along the top. At Bedford, scroll down to V A & B.

A little time spent reading about culture in several places will give you a lot more confidence in growing and blooming your beautiful phal.

Here is a link that might be useful: COC culture sheets