DMRBG,
I use the above filter material for a suspended and settleable solids filter in my systems. I don't bag it like you did as it's easier to clean with a garden hose and nozzle if you cut it into pieces. I clean the solids off daily and do a 10 percent water change daily due to the several hundred bluegill and yellow perch in my two tanks. I also use a bottom drain for settleable solids, which works really, really, well. When I pull a gate valve to purge the bottom solids -- before they go down the drain --it's like nasty smelling black coffee coming up.
*Clarifier tank (where the mesh filter goes into) minus the fish tank

I use a homemade RBC for a biofilter, but a simpler and cheaper biofilter would be to use a 55 gallon drum half filled with plastic media, an inlet and outlet for water, and a diffuser on the bottom. The water would overflow via gravity back into the tank if you position the biofilter above your fish tank.
An RBC inside a fish tank which is the way I had it originally. I no longer use an agitator and the entire system that has a 200 pound capacity can be run on 39 watts of electricity.
I've since moved my RBC's to a separate tank here:
I would strongly suggest cycling your system before adding the fish. Cycling with fish is very risky and hard on the fish. You could easily kill your fish.
Find you a circular stock tank at Rural King, TSC or similar store (preferably plastic) vs. a 55 gallon drum. A drum would be a stressful place for fish and severely limit your lbs. per gallon.
I'd be happy to share a diagram of my system if you're interested. I also have free coupons for the book
Small Scale Aquaculture by Dr. Steve VanGorder that is coming out in print soon. (2nd Edition) If you use the coupon you can get it for $16.00 vs. a higher price later. PM. me with your snail mail if you want me to send you one. I get nothing out of giving away the coupons which were given to me by the author. Just the satisfaction of knowing the best book on small scale systems is being made available at an affordable price.
* I'll be using the solid waste water for our raised garden this year, and will be setting up an aquaponics fish tank ans system outside in a month or so. I'll probably be raising tilapia for food in that one.