I am looking for something to fit most of my tackle in that is easier to carry than 1 large plano tackle box and 1 mini version for terminal. I know i want something that can be carried hands free if need be. I plan on getting plastic storage containers and then putting the containers in the bag for more organization.

What bag or backpack do you guys use or recommend?

Personally I use the BPS ugly yellow boat bag.  it is big enough and water resistant as well.

Here ya go:

http://www.cabelas.com/cabelas/en/templates/product/standard-item.jsp?_DARGS=/cabelas/en/common/catalog/item-link.jsp_A&_DAV=null-cat601748_TGP&id=0018716902478a&navCount=0&podId=0018716&parentId=cat601748&masterpathid=&navAction=push&catalogCode=IA&rid=&parentType=index&indexId=cat601233&cmCat=netcon&cm_ven=netcon&cm_cat=Google&cm_pla=cabela%27s%20safari%20vest&cm_ite=netcon&rid=2146251080&hasJS=true

I use a back pack, the one I have holds a a Plano 3780, 700 series BPS double-sided crank bait box, a Falcon FTO terminal tackle box, a Field and Stream worm/spinnerbait wallet, a plastic bag full of used or loose plastics, a few small pocket stowaway boxes for jigs, and fill in some pockets with bags of baits or cranks still in the package. 

I use the cheapo Flambeau bags from Walmart.  It holds three "normal" sized boxes, I don't know the numbers on them.  Plus it has two large exterior pockets I use for plastics.  One of those pockets unzips and folds down, in there I store scale, pliers, sunscreen, etc etc.  Also two smaller outer pockets I use for terminal tackle and other smaller items.  Plus a pocket in the top, I store spinnerbaits and buzzbaits there.  Here is a link, scroll down to the AZ3 model.  I think it was $22 at Walmart.

http://fishing.flambeauoutdoors.com/otdrs_fishing/soft_tackle/soft_tackle_systems.asp

http://www.basspro.com/webapp/wcs/stores/servlet/Product_10151_-1_10001_10200527_999043014_100000000_999043012_100-22-2

I bought this because i'm mainly a shore fisherman, and has backpack straps. It has two drink holders, 4 pockets on the sides, and 2 pockets that are round for spare line. it also comes with a vinyl cover for yoyur pack when it rains. You can fit 8( ) 360 utility boxes or 5 370s. So lots of room for more stuff ;D. And when you wanna switch your style, switch out the boxes.

I'm with RW on this one , you can't beat a fly fishing vest. Why do some of you think that you have to lug around every bait you own when fishing ?