I've used both a tackle bag (Bass Pro/Cabela's/Plano/etc. brands) which is a heavy duty nylon bag with zippered pockets. Plastic trays fit inside (to hold lures and hooks) which I use for small notions. I only use one tray (my bag holds 3) and the rest of the space I use for larger notions. I've also used a tackle box, but like the bags better as they are flexible and you can basically "stuff" them full (think fabric). The bags (and boxes) come in multiple sizes, so choose the size that works best for you.
I've also used: plastic (Tupperware) containers, lunch boxes (both metal and plastic - minus the thermos bottle), tote bags, cosmetic bags, even grocery bags...haven't really found the "perfect" schlep bag yet. (Schlep is the Yiddish word for carry). I will stick with my tackle bag for now.
Neauras: I would definitely take your box back to Walmart. They know their merchandise and if it broke after only a couple of months, they should (and probably will) give you your $$$ back (or at least a merchandise credit for the amount of the box).