New Beardie in 40G National Geographic Terranium

After a few days of having our young beardie, we got him a 40G National Geographic Terranium from petsmart. This is a really well built kit. The beardie even climbs on the foam rock wall. I even think he slept on it last night. Is this normal?

See the pictures:
http://i1212.photobucket.com/albums/cc456/Wblaze/Steeler%20Enclosure/IMG_50711.jpg
http://i1212.photobucket.com/albums/cc456/Wblaze/Steeler%20Enclosure/IMG_50721.jpg

Is the setup too big for such a young beardie?

That's a palace for a young dragon. It will give him plenty of space to run around and climb. As long as he isn't acting stressed out he'll be fine in the tank and likely happier to have the space. I have a similar tank built by exo-terra and love it. I took the foam background out though because bugs would hide under it. I replaced it with a mesh triangle that suction cupped to the side. My little guy liked to climb on that and would fall asleep on it too. If you can find some hardwood sticks in the yard (bake them at 250 for 40min) you could try adding those for additional places for him to climb. I also suggest removing the coil UVB light and replacing it with a T5 UVB tube. The tubes work really well in an enclosure that size and will give a nice even spread of UVB across the basking area. I have a couple of suggestions that will work well with that tank.

This fixture http://www.amazon.com/Sunblaster-904296-NanoTech-Fixture-Reflector/dp/B00AKKUBDQ
With this bulb http://www.amazon.com/Zoo-Med-ReptiSun-10-0-Lamp/dp/B00AQU8HAO/

Or this combo set http://www.lightyourreptiles.com/22-t-5-ho-fixture-high-output-with-arcadia-d3-12-ho-bulb/

Either of these can go right on top of the tank (they're powerful enough to provide plenty of UVB even through the mesh top) on the basking side right next to the basking bulb.

Thanks for the feedback. I just ordered a 24" reptisun T5 from Amazon.

What a little guy! Since he's so little and you have a bunch of unused space I'd look around for some nice branchy sticks, little ones like to climb and having visual barriers will help them feel more secure in their enclosure. It also gives them more opportunities to bask at different temps.

Make sure you continue offer shade with your T5 bulb and mount it about 12" away from the highest point. They are excellent, strong bulbs and your little one may want to stay warm but "out of the sun" sometimes.