Do a search for vermicompost, you'll find tonnes of info. My favorite
site is:

http://www.wormdigest.org/

I got my worms for free from my local government waste management
facility. I'm using rubbermaid containers. I had a 10gal but found
it hard to lift & clean as the volume increased. Now using several
3gal. I would not recommend smaller as it's easy to over-feed the
bedding. Read everything before trying it out. It's a bit more
maintenance than regular composting but easier then raising a
goldfish.