I use a Phil Sparger over a 10 gallon Rubbermaid cooler with a stainless false bottom that I use as my mash tun - it is what came with my Norther Brewer 'Deluxe All-Grain Kit' that I bought.
http://www.northernbrewer.com/pics/fullsize/deluxe-ags-10.jpg
I do not do a mash-out and always allow for more sparge water than I need. I add 175 degree water to my pre-heated HLT which is another 10 gallon Rubbermaid cooler. I try to keep about 1/2" of water on top of the grain bed. I sparge for 1 hour to collect the 7.75 gallons of wort that I need for my 90 minute boils. About every 10 minutes I use a piece of 12" 1/8" rod to gently 'break-up' the grain bed in an effort to eliminate any channeling.
Oh, and I crush my own grain using a standard, non-adjustable JSP MALTMILL while I'm waiting for my mash water to reach it's strike temperature. My efficiencies usually fall between 80 - 88%.
I'm very happy with my set-up and have no plans to change anything.
Hope this helps.
- GL63