Greeneyedgirl we have a metal bin with a plastic lining bucket in the kitchen. All our food waste goes in the compost, to the wormery or in the Green Cone for meat and fish, and we wash out food containers before recycling or putting them in the bin (the annoying ones which say "Check local recycling" but don't tell you what kind of plastic they are
). Therefore there is no smell and we tip the plastic liner's contents straight into the wheelie bin. The plastic bucket is washable of course, when necessary. I can't see any need for liners of any kind.
shysal, you must have excellent local recycling if they will take plastic bags! Most councils won't, but you can usually recycle them at larger supermarkets. Like you, I have picked up bags for life blowing around, and I keep a couple of them for picking up plastic bottles and cans when I'm out so that I can put them in the recycling bin (which we never manage to fill by ourselves) when I get home.
Like many other GNers, I have a selection of cotton and other bags. The cotton ones are very good for carrying knitting, I find. 