Hi Sandi! Welcome to the addiction of orchids! and welcome to Orchidtalk! I would use bark mix for your phal. Baldan's Kaliedascope is a very pretty one. Clay pots will work well for your plant.Even though you think the current pot is too small,I wouldn't go any bigger with the pot you put it in. Most orchids seem to like being root bound or tightly potted. The roots hanging over the edge of the pot are air roots and don't need to be tucked in the pot. Remember that phals are epiphytes and grow best with air circulating around the roots. There are some threads on re-potting orchids on this board, look through them before you do your repot. Have fun and good luck!