I haven't made a bucket but I have made a beer mug. For a bucket I'd do things a little differently. I butted the edges together and stitched them. For a bucket, I'd butt the edges together but glue in a strip (either on the inside or the outside) and sew each edge to the strip. Sealing is pretty easy on a bucket since nobody will be drinking from it. You can waterseal it with all sorts of stuff. If you wanted to stay kind of people safe, you can use beeswax or paraffin or a mix of the two. If you want to just get it sealed, you should be able to use just about anything that'll seal up wood.
My $.02. Post pics once you get it rolling.