The substrate you have is fine as long as it feels damp. I have the sphagnum(it is finely ground for gardens) because my desert tortoise was the laziest thing ever when i had him inside and didnt wven bother to get up to eat he just ate the substrate and the sphagnum wouldnt hurt him at all. I do have more of The standard type of moss in the adult enclosure in the areas that they prefer to dig down and they do really like it. I don't have it in their hide boxes as they tend to kick it out but it surrounds their basking stone where they spend most of their time. For food dishes shallow ceramic dog bowls or the bottom plates to pots are great if they have that smooth shiny coat, this makes it so worms can't crawl out on their own. They also make great water soaking pans. Oh and when your box turtle is full size you don't even need to worry about food dishes. My enclosure has a mealworm colony in it and I throw in crickets, earthworms, and roaches for them to chase down. Does your neighbor have box turtles? From the pictures he looks fine to me. His shell seems like it is an appropriate size.