Kaytee bedding is OK....it's their food that is rubbish.
BUT...from experience, I personally stay far away from *any* wood-based bedding. Over the many years I have owned mice, wood-based bedding became such a huge problem for me that I altogether quit using it several years ago. If you freeze it in a sub-zero freezer (or bake it), that will kill any mites or other external parasites that come in on it (wood bedding is notorious for bring these nasty little "extra" gifts with it)....but I had SO many of my pet shop mice pop allergies to the bedding that it just wasn't worth it anymore. They suffered constantly from URI's...dusty wood bedding can make them sick, and some bedding, if it isn't kiln-dried, secretes natural oils that can kill mice....I just gave up. If you don't freeze or bake bedding before giving it to them, wood-based bedding is the number one cause of external parasites (mites or lice)...so that's another issue that wood-bedding can cause.
So, for many years now, I stick to paper-based bedding. Paper isn't as adsorbent as wood, but I think a little extra stink at the end of the week is worth their overall health. I use good old shredded newspaper and toilet paper, but Carefresh is a good brand (the colored kind, the grey kind is really dusty), and I've heard good things about Yesterday's News Cat litter.
Just some of my experience. If I can head off a problem before it starts, better safe than sorry. There is nothing wrong with using wood-based bedding, of-course, this is just me. I will tell you that I haven't had any issues with my mice becoming ill due to bedding for *years* now....and one Sunday paper at $1.50 provides enough bedding for all my tanks for two weeks! Much cheaper too!
