JOECELEB, here's what I've been doing:
The ballast is from Scenic Express, the lightweight ground walnut shells, #20 fine, EX3150 & EX3050. The 5 gallon buckets will pretty much take care of the whole thing - BUT, if I had it to do over, I would have used the stone or granite ballast. The lightweight stuff is nice, but it is so light that it scatters everywhere, and is easily displaced by static electricity before you get a chance to glue it down.
I use the ballast spreader in the photo and link below, that works well, then a flux brush and small artist brush to clean it off the ties. Glue is 1/3 white glue, 2/3 water, applied from a mustard bottle or eyedropper in tight spots. Sprayed beforehand with the usual water and a couple of drops of detergent. I kept the glue mix a little on the light side just in case I want to change things around.
I have not used roadbed, the track is screwed directly to Homosote, with 1/4" - 3/8" wide strips of 1/8" cork glued down alongside the ties. I pretty much followed Dennis Brennans book, "Realistic Modeling for Toy Trains" for the ballasting.
http://proses.com/modelrailforum/items.html