Got the tallycoin part setup but I think I need to put Bitcoin in the wallet and then open some channels first before I can us it?

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You need to have inbound liquidity, yes. Opening channels gives you outbound liquidity, so you’ll need to send some sats out of the channel to get inbound liquidity, or have/pay someone with a routing node to open a channel with you.

Is this your first time setting up a Lightning node?

Yes I never set it up before and was just using the Bitcoin node.

You can buy inbound liquidity from a site like https://amboss.space/magma

For example you could buy a 1M sat channel (for a small fee) and someone will open a channel to your node, providing you with inbound liquidity.

Or if you know anyone with a node that has public channels you can have them open a channel to you.