Thanks for the replies. I'll go with barley straw, not found any red mites in the shed yet, and it always smells alright, henny but not bad, so figure there cant be too much bacteria in there yet. I have wood shavings too, so if I start getting problems will switch to something else.
The 'euculyptus bedding reminds me of one spring years ago my mums pony got sick and had to be stabled... They lived out all year round, so we had to go and buy bedding that evening.-all that was left was some uber treated, dust free, top of the range bedding, cost her a small fortune but you could smell it from the road!