If you do a bleach rinse (water/bleach mix.. same mix you use to wipe down the entire enclosure) the carpet doesnt get anywhere near as gross (and no bacteria). Especially if you use a dishwashing scrub brush (like the bristle kind).
Always rinse VERY well with water.

I still personally prefer aspen shavings though.

My BP wouldn't go in her hides (humidity was good, temps were perfect, etc.) She had paper towels as substrate her whole life with no problems. I changed her to Aspen and she started using her hides again...



As far as a larger enclosure I am not as big of a fan of the rack systems as alot of people on here... but the sterilite large tubs are cheap and definitely work in a pinch (must drill holes/etc). My main problem with them is the height, Larger hides are taller and I can't find any that she can fit her whole self into that are short enough for the 6" tall tub she is in. (So I am building an enclosure for her)