Welcome, and congrats on your new babies.
Keep in mind that rabbits reach sexual maturity and can breed sometimes as young as 3 months. I would seperate them as soon as you can then if you want too, rebond them once they've both been fixed.
For bedding, carefresh and newspaper are both fine to use. A lot of people here use Yesterday's News, it's a paper pelleted cat litter that is safe for rabbits. Most people actually don't use bedding for the whole bottom of the cage. I use Yesterday's News in my rabbits litterbox but for the rest of the cage I just give them blankets and dog beds. However, since your rabbits are still young and arn't fixed, they'll probably be messy! You can use litter all over the bottom of the cage for now then once they are fixed and better with their litter box habits, you can give them blankets and such and just use something absorbant for the litter box.
Good luck, and please feel free to post any other questions you have. Did you pick out names for them yet??
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