Seeking input on my non-traditional reef startup

[ShoreReefing]

I've been referring to this forum for info as my tank has progressed and I apprecaite all the great info everyone provides, so before I start, thank you all in advance.

Six months ago, after 10 years of cichlid keeping, I made the decision to convert my 80 gal cichlid tank to a saltwater tank. With limited financial means I have tried to utilize as much of my fresh water equipment as possible, so I'm hoping to get some feedback on my set up in general to head off any catastrophes, and also address my question about refugium selection.

I have a Rena filstar 2 canister which I use primarily for manual/chemical filtration and I have a marineland/pengiun 350 which I use for additional manual/carbon filtration and biowheels. Using an AquaC Remora protein skimmer and I have a ZooMed Coral Sun light fixture with a 10K t5 bulb and an actinic 420 t5 bulb. I was previously using the Penguin HOB for bio filtration and had it filled with live rock but cloudiness persisted so I put the filter cartridges in and it quickly cleared.

GH 180
KH 160
NO2 = .5
NO3 = 15
PH 7.5-8
Ca 490 ppm
salinity 31 ppt

Fish/Inverts:
2 clown fish - tomato and osc
1 tank
1 coral beauty
2 mono
2 scissor tail gobie
an urchin, bubble anemone and saphire shrimp

Corals: Mostly zoanthid frags, a finger leather, a torch, a hammer, some cloves, Goniastrea brain,

My questions/concerns are as follows:

1 - I was previously using both the coral sun light fixture and the reef capable light fixutre I used for the cichlids which was a Solarmax H.O. Double T5 which had another "daylight" bulb and a 6500 bulb. I ended up getting some light sensitive corals so I got rid of the Solarmax. Does anyone think that using both lights was overkill and could it have been harmful? I only ask because I did lose a couple of the orignal corals I purchased but it could have been lack of skimmer or cycling issues.

2 - Even though I reverted back to the cartridges, I was using the HOB filter filled with live rock an acceptable form of establishing a bio filter or was I crazy for even trying since the water should flow over the rock instead of under?

3 - I'm very careful about the fish selection but quickly become overhwlemed when trying to determine coral placement. I always research the coral so I know if it needs high or low light, high or low water flow, etc....but I'm not sure how to carry that out in the tank. How can I know if it's bright enough or too bright or if the flow is too much or too little without being able to measure light or current throughout the tank? THis is complicated by the fact that the tank is 48" long and is deep at 24" so is 24" from the light source too far for even a low light coral? (pic att'd)

4 - Last but not least is my most recent debate regarding a refugium. Even though I'm not sure if I "need" one, I was hoping it would save me having to target feed the live phyto feast every day or two. And the potential reduction in nitrates is always welcome since I will likely continue to add to the tank. The problem is that I do not have a lot of space underneath the tank since the tank isn't very wide from back to front, so I was considering HOB refugiums. They are still very expensive and I found few for under $200. I did find one for $25 which is a Finnex multi-purpose HOB http://www.finnex.net/index.php?option=com_virtuemart&page=shop.product_details&flypage=flypage.tpl&category_id=5&product_id=268&Itemid=61&vmcchk=1&Itemid=61

However I can't find any reviews on it anywhere, so even though I know $25 sounds too good to be true:
4a- Is it possible that it could work for my purposes?
4b -Would I be better off with an internal refugium even though it shouild be lit 24/7?

Thanks again, all input is welcome and appreciated.

[jerpa]

1. 4 T5 bulbs are not overkill in a tank of that size and depth. I doubt very much the coral losses were from too much light.

2. The rock will serve as a biofilter no matter where it is in the tank, sump, hob etc. If you have it in a filter you need to make sure detritus doesn't build up as this can cause nitrate issues.

3. Coral placement isn't scientific. Start with a healthy coral and use the guidelines to place it somewhere. After a few days if it doesn't look happy move it higher for more light, lower for less. To judge your flow pay attention when you feed the tank. You will see the food go thru high and low flow areas.

4. I'm sorry but I don't have experience with the HOB refugiums.

About your water parameters. You should have no detectable nitrites. With that many fish your tank is either overstocked or it wasn't cycled properly. Nitrites are very stressful to corals, slightly less to fish. Nitrates are also a little high. You need to do water changes to lower them until your biofilter catches up. Also you want to raise your salinity slowly to 35 ppt if you want to keep corals.