Yes, leave it in pellet form. You definitely dont want inches of sawdust in their enclosure! Dust city! Haha, they would try to burrow in it.

It looks like a great product and something to try out. Equine fresh is what I use. Some say it's too dusty when broken down, but I prefer it over yesterday's news or cellsorb for odor control. And I don't like aspen, it's stinky when peed on (I think it is anyways) and it's just so dusty. I give my pregger girls a handful to nest in, it keeps the broken down sawdust from the pellets sticking to the pinks. Havent lost any pinks yet! (dont wanna jinx myself)