You can use basic grocery store distilled water, it costs roughly $1 per gallon, and is readily available in the water isle at the store.
Coolant mixture is of preference, with me personally seeing 15% antifreeze as too much. That much antifreeze will cost you degrees, as antifreeze does not have the thermal capacity that water has. I actually think any antifreeze is too much, I use water wetter only. Again, this is all personal preference, you should try different coolant solutions and see what works best for you. At any rate, if you decide to go with antifreeze, use a minimum of 5%. Algecide is def a good idea, so you dont get any algea growth and such. The water wetter I refer to is available at auto stores under the brand name Redline, if you are interested in trying it out. Be warned, that water wetter is likely to cloud your tubing and turn the coolant a weird color, but these arent big deals if you plan to use a dye in your loop. Also, water wetter stinks pretty bad. Not a big deal on a closed-loop system.
I would leave room for air in the t-line, it does not need to be filled to the top.