Re-potting a Phal, but I need some advice!

[Aslan14]

Hello again fellow Orchidians :-) My mom finally put my in charge of her beautiful Phaleanopsis. I has bloomed every year for the last five years I have been home, but never re-potted. So I decided today would be a great day to do it. However, I am not 100% sure how to proceed with this one.

As you can see from the picture, it was planted in a VERY small plastic container. I had no idea this was the case, the small plastic pot was inside a larger pot and covered with bark. The yellow roots in the middle of all the other roots in the second picture are the only ones that were inside the pot. The large tangle of others were completely outside of any potting medium. I have med and fine fir bark to use, and I was also thinking about picking up some charcoal to mix in. Is a med fir bark and charcoal mixture a safe way to go? Also, should I try to get as many of the "arial" roots inside the pot with the new medium? Or leave them out? Any suggestions would be helpful. Thanks!