Yes you'll need the lime. There are some soil recipes in the first link in my sig.

You can transplant into 5 gals, but a better idea is to use the 3 gals first...
- The lime only lasts for 6-8 weeks, then you will have ph problems.
- Don't want to waste all that soil on males.
- Easier to water
- The roots will make better use of the space when transplanting several times as they tend to get bunched up at the bottom.