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One of my 2 Rose-hairs is a burrower also! She dug out the coco substrate underneath her cork round and now has nice hide/burrow. On the other hand my other Rosie isn't enclined to burrow at all!
Peat is a good choice as it compacsts easier than coco. I like cork bark but plastic containers like plant pots are great for hides/burrows. You can find plastic containers in dollar stores and Walmart.
Definately keep an eye out for mold. This can come from moisture, as it's balance between required moisture and and mold causing moisture. Just keep on top of your substrate and replace any moldy/questionable stuff. Water bowls are also easy to change if they get nasty. As far as carcasses it...
I have a beautiful female chaco golden knee! She has 10 gallon aquarium/tank with a hide, water dish, and coco fiber substrate. They are a great T and you should have no problem sexing.
Better safe than sorry! Ther are too many safe alternatives for decor. Try your local pet store for decor even aquarium decor can be cool. Artificial plants and decor can found at craft and even Dollar stores! Be creative but cautious!