Distilled water isn't appropriate for the soaking dish. Go with bottle spring or tap water if it's not too nasty (like the ph 8.0-9.0 stuff we get here sometimes). From what I understand, distilled basically causes water stress since it's water potential is so high.
Red wrigglers are bad feeders. They have a weird taste to them apparently. Try using canadian night crawlers. You can try crickets too if you rip off their jumping legs so they move slower.