A great book to check out at the library..(an then buy it when they get tired of you renewing it.:)) "Worms Eat My Garbage", by Mary Appelhof. This is an easy read and full of good information on vermicomposting.

You have almost everything you need, and the rest is easy! Assuming you want a small operation, to get rid of your kitchen scraps and give you some great castings for your gardening, all you need is one or two cheap, opaque plastic storage bins with tops (about $4 from K-Mart), and some newspaper. There are all kinds of different ways to set it up, to facilitate the harvesting of the castings once they're ready, but what I did was drill lots of holes in the bottoms, along the top sides, and one of the tops of the bins, using a 1/4 inch electric drill. I used the other top as a base (to catch the small amount of liquid that leaches out from time to time), with 4 small plastic plant pots set in the corners to support the first bin. Fill the bin with about 4-6 inches of shredded moistened newspaper (bedding), scatter in your compost and worms, and you're done. I feed the bin once a week with all the kitchen scraps I've accumulated over the week, and cover with a thin layer of new bedding (keeps down fruit flies and absorbs excess moisture). When the first bin is about halfway full of almost finished compost (takes about three months), I just set the second bin inside the first, and start again. After another three months, the stuff in the first bin has been completely finished off and is ready to use (with the exception of the odd avocado pit that I have to fish out), and most of the worms have moved up through the holes into the second bin in search of food. I don't try to separate out the few remaining worms; they just go out in the garden with the castings; some people dump out the casting and pick out the worms before using. Kelly has described in this forum another system using one bin and a screen that lots of folks seem to like -- try a search for "kelly" and "screen".

Have fun! (Why does this funny hobby give so much satisfaction? Some psych graduate student should do a paper on wormie people)