Marilyn, your first pot in the top photo looks fine. You just have too many rocks. Remember, it's the live stuff that's more important.
Can't really see all in the 2nd pic but it's a good question to ask and check on regarding the safety of the paint.
Only drawback with baskets is that unless you line with plastic (but then drainage is impeded), it will be leaky and the basket will rot overtime. And if it is one of those one-of-a-kind, can't-find-it-anywhere work of art basket, you may not want to use that?
