Yes, you could easily line the pants as you mentioned. For the casing to hold the elastic, I would do this step last. Here's how I usually do it:
Basically sew everything together as instructed, but for the lining: machine baste the back crotch seam about 2 inches from the top of the waist. (If you've never basted before, all it requires is for you to lengthen your stitches as much as possible. For most machines this is usually a stitch length of 5.)
Once your pants are together and the waist has been sewn together, stitch another seam parallel along your waist a little wider than the width of your elastic you'll be inserting.
Now, carefully with your seam ripper, open up the back crotch basted seam of the lining in between your parallel waist seams. Insert your elastic, stitch together, and close your seam with a small zigzag stitch. Since it's in the back and not very long, this seam should not be too visible.
I hope this makes sense! I tried to search some sites for a tutorial or pictures, but came up with nothing.

Let me know if you need any further clarification. Good luck!