I'm new to the higher tech world of camping. Still not sure how to hook my sleeping bag on my internal frame pack. Is it suppose to bounce and sway?

Ok, attaching things to your pack!

Here's how I did mine, a Kelty external frame pack with two large compartments and 4 pockets, two on each side: bottom compartment was my food, water, cookware, top compartment was clothes. Side pockets: first aid, whistle, matches or disposable lighter (one in every pocket), maps, books, candle lantern, rope, trail food (munchies), small flash light, etc. Then I tied my sleeping bag under my pack using two straps through the slots that were there. I tied my tent and sleeping pad on top of the pack, again using two straps to secure them in place. Everything should be snug and tight, no swaying or shifting. Also position your pack properly on your hips and secure tightly. Try that!