Hey Juggernaught,
with my experience in vermiculture... sphagnum peat moss makes perfect bedding... i bet coco would be just as good. I wouldn't use newspaper for bedding.
I pre-compost all the veggie scraps, so all the water gets drained out before I put the good stuff in. If I throw the veg scraps strait into the bin, I have the potential of creating too moist of an environment because the veg scraps are 75-90% water. worms may drown in too moist bedding.
vermicompost will really benefit microbe wise with veg scraps high in vitamin C. (kale,broccoli,greens,etc.)
stay clear away from garlic or onions, they are toxic. large chunks of any root vegetables will start to grow, but potato peels are an excellent addition. and any left over seeds will grow.
you will want to balance the green nitrogen input with brown carbon, peat moss, coco and leaf mold are great sources of carbon, and don't forget sand. the worm's gizzard needs sand particulate to help process/digest the scraps.
good luck,