There is lots of misinformation on the subject of raising red worms. After five years and raising millions of red worms, I have found the best formula to raise worms with ease.
Alot of books mention the use of peat moss or coconut coir. Although these materials can work, you can sometimes get ahold of poisonous batches that will kill your worms without warning. I lost over 100 pounds of worms to a bad batch of peat moss from lowe's, so if you choose to use this medium, you are risking the health of your worms, and could kill them all in one fell swoop. Many of the books were written by home vermicomposters, not experienced worm farmers.
The best bedding medium is PLAIN MANURE COMPOST with no other materials mixed in. You can use bagged black kow manure compost, or bagged daddy petes cow manure, or bagged daddy petes kickin' chicken manure. If you have access to manure compost on a friends farm, this can be a great medium as well. Make sure that it's been leached by the rain and has gone through the heat phase. It will look like soil when it is ready to be used as bedding. Manure bedding serves not only as a home for your worms, but also as a food stock.
Your bin will need ample drainage, you don't ever want standing water in a worm bed. The compost should have the moisture level of a wrung out sponge- no more, no less. Bury your food scraps in the medium to avoid attracting pests. Don't feed more than the worms can quickly consume. Feed less than you think you will need, as over feeding can kill your worms.
If you are raising worms for bait, you can top feed alfalfa pellets or chicken egg layer crumbles. Just a light dusting on the surface will do. Wet it down and cover with damp cardboard as worms prefer feeding in the dark.