Have you tried chicken nipples for the water? You can make your own water bottle using a drill, anything from recycle bin, and a piece of wire for hanging (coat hanger wire ). They are quick & easy to make, keep the brooder dry, and keeps the water clean. I never had problems with a chick learning. Once one chick tries and figures it out, the others all join in.
I just use the large flake hardwood shavings. Yes it can get dusty when they roll around to dust bath.
@homeschoolin momma uses a sift-able type of bedding.
I also use a "mama heating pad" when I do not have a broody hen. I have kept chicks in the garage (to eliminate chick dust in house). The chicks go in & out of the warm spot as needed - just like a hen. It seems the chicks feather out a little faster too.
Of course as I write this, I have a few chicks that just hatched over the weekend in my basement. I'll probably move them to the garage when they're about a week old - if the temps are above freezing most of day. When they're about 3-5 weeks old, I move them with their mama heating pad into a cage within the coop to get the flock used to seeing them.