Well, time for my two cents.
I would first like to say that the white ceramic cat creeps me out!
Here's how I keep my 4 Northern Red salamanders (Pseudotriton ruber ruber): I have them in a 15 gallon sterilite storage container with several larger holes drilled in the lid and along to top half of the side. In the container, I have approximately 3-4 inches of coconut fiber bedding. I keep the coconut bedding thoroughly soaked, so much so that there is about 1/2-1 inch of standing water in the bedding. Because the coconut fiber bedding is so saturated with water, that it holds together very well and it is easy to find the rubers by tracing the burrows they leave behind. I regularly spray/mist the setup with cold water to keep the water level up.
My 4 rubers, which I would like to publicly thank Ed Moyer and Justin Reed (Greatwtehunter) for, are thriving in this setup on a diet of burrowing insects and nightcrawlers. Now, they will not breed in this setup because, as has been stated already, they need cold, running, well-oxygenated water to lay their eggs in. However, they can live perfectly happy and healthy in a terrestrial setup, as long as they are kept cool and wet.