Using paper towels in a glass tank will be terrible for the humidity. Cypress mulch would be the best choice and holds moisture well. Repti bark is not bad and will work with your setup better than paper towels. Just mist it each day.
You do need to regulate the UTH. I like and recommend Herpstat.
http://www.spyderrobotics.com/store/...ain_page=index
Buy the best tstat you can afford. It is not an item to go cheap on.
Also the substrate over the UTH needs to be thin, usually 1/4 on less. Right now since it is not regulated and I assume your only heat source I would keep it thicker. If you are using the lamp that came with it and can create a 90 degree surface hotspot with an 80 degree ambient temp I would say unplug it for now and just use the lamp.
You really need two hides so even if it is alittle cramped I would put two. You might check into a smaller set for now, our make some. The snake will feel more secure with less open space. The more cover the better, especially for young snakes.
Another tip to help with humidity is place damp moss in the hides. This will create a humid hide with higher humidity than the rest of the cage and will benefit your snake greatly.
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Just remember that everything you put in the tank will at some point need to be cleaned. Make sure the items can handle water, heat, and high humidity.