You'll probably want to get some padding up against the camera to prolong it's health. Even a liner made of something kind of thick and squishy would be perfect. If you've got a friend that's handy with a sewing machine, you're good to go. Just stay away from materials that make lint, like felt. I think most padded camera bags are made with some kind of foam stitched into a nylon outer layer. While you're at it, it wouldn't hurt to address the issue of waterproofness. This is getting elaborate, but it's an ideal solution. You will also probably be just fine with the camera in your bag's front pocket.

And thanks for the comments on the photo, gang.