Kearneyweard,
First off, welcome to the Board! This is one of the best places to come and get help from people around the world who grow orchids!
So far, I would agree with everything that you have done and with the advice that has been given to you. I will just add in a word of caution- I used to have ALL of my phals in sphagnum, however, even letting it dry out as much as I could feel and in properly-sized pots, I lost several of them due to root/stalk rot (I suspect that the problem was that the root ball and the center of the pot was not drying out as fast as the rest of the pot due to high density rootballs). This being said, I have switched over to a bark mixture to help avoid this issue.
I am not saying that sphagnum is not a viable potting medium and that you shouldn't do it, simply keep a very keen eye out on your phal because I find that sphagnum is a "harder" medium for beginners to use properly. But, of course, everything is dependent upon YOUR conditions.
Good luck and happy growing!