Sal,
I would also line the cup with burlap to keep the dirt from spilling into the reservoir. That is what I use. The burlap is porous and is a great way of keeping your wick in tact. I have 6 x 5 gallon SIPs that I have made and they work great. I agree with Ed, put a 1/4" hole a bit below the top of your basket. That still gives you a very large reservoir.