S.S.
Angie,
I also have my wet bag in a diaper pail with a lid, but mine is in the bathroom next to the laundry room. I figure it is OK if the bathroom smells a little.
When the diapers start to smell too much like urine pre-rinse them in cold water and then wash them warm with the washer set on the highest water level with 1/2 cup baking soda and a Downy ball full of white vinegar. You may have to do this twice to get the smell out. I add baking soda and vinegar to the load once a week now and that pretty much keeps the smell under control.
If you don't use cloth wipes I recommend it, I've found this helps my son smell better. I use Washy Wafers from nuttybums.com. You dissolve them in water and then put them in a spray bottle or soak your wipes in them. I prefer the spray bottle, which I spray directly on him and I control how much (more if he's too smelly). I also REALLY like the Northern Essence foaming wipes solution (also put right on him) but it is much more expensive, or we go through it too quick.
Hope this helps ^_^
SAS