Item tokens: http://dwarffortresswiki.org/index.php/DF2014:Item_tokenItem subtypes are only used for certain items, for instance, GLOB:NONE is correct because GLOB item types don't have any subtypes, for WEAPON item types you would use WEAPON:ITEM_WEAPON_SWORD_SHORT (as an example for a short sword)
Material tokens: http://dwarffortresswiki.org/index.php/DF2014:Material_tokenAgain, not all material types have a subtype. As you can see, for your water product, you actually don't need that second WATER because the WATER material type doesn't have a subtype. I'm not sure if it hurts anything, but you may get an error about it printed out in the error log. As for your GLOB, specifying NONE:NONE is going to give you a GLOB made of a random material, and not necessarily a fat. For an example you could replace the NONE:NONE with CREATURE_MAT:DWARF:FAT and you will instead create fat from a dwarf.
The GET_MATERIAL_FROM_REAGENT:A:RENDER_MAT from your original reaction is a special material token that allows you to make a single reaction for processing of many different reagent materials into the correct product material. The reason it didn't work before is that the bucket does not have a MATERIAL_REACTION_PRODUCT, RENDER_MAT. So it simply fails