HOB Refugium for NANO Anyone using them?

[Koresample]

I don't have room for a sump, but i want the benefits of one. I went out and got an Aquaclear 110 yesterday, which is the largest that will fit on the back of my 40g Fluval Nano cube. I put about 5 lbs of live sand in it, plus about 1.5 lbs of established live rock rubble. I took all the filtration media out, just left the basket in there to create a wall between the powerhead chamber and the old media chamber which is where the rock and sand now are. I am picking up the Coralife 9" PC light (9w actinic + 9w 10k) to go over the top of the fuge area next week and will put it on a timer, 12hrs on, 12hrs off. I set it up last night and peeked in after lights out and it was crawling with life, good news for my soon to be coming home mandarin!

Questions for those that have one or have seen one in use.

Should i slow the flow down even more than i have now (the 110 has an adjustment that lets you cut flow by 2/3, but that is still 167 gph flow)? If so, what works best to do this?

Is there other beneficial stuff i should put in with the rock and sand? I have heard of some guys using chaeto (sp) but don't know what it is or why you would put it in there

Any other tips or tricks?