1) 3W LEDs should be about 2" away with diffusion grating in between the LEDs and the screen. I like to put the 1/2 way in between, that way there is a little spread of the light before it hits the diffusion grating, then a little 'blend' area between that and the screen. Seems to work well. You can put farther away and use no grating. The distance decreases the light intensity slightly, but so does the grating, so it's about the same IMO.
2) you don't need any reflective material on the sides of the LED fixture, so I'm not sure what you're referring to here. LEDs are highly directional, most of them have 120 degree dispersion, meaning that about 90% of the light is directed within a cone that extends 60 degrees off perpendicular. So not much light gets thrown sideways, so there's no need to capture it.
3) Saran wrap is a technique to keep the spray from the slot pipe from hitting the lights or going everywhere in the sump. Diffusion grating is for blending light as described in #1
4) I'm guessing you're using the Eheim Compact 1000? Don't use it. The head loss (figure 13" vertical, then fittings, etc) drops it to about 200 which seems perfect for a 6" slot, but when algae grows into the slot the head loss drops it way down, and then the pump itself has a very small inlet grating at the bottom which clogs easily with tube worms, etc, and the the built-in flow control create more restriction. After 2-3 months with a full screen of growth and built-up gunk in the pump, your flow will drop to 60-75 GPH. Trust me on this one. Go with a Rio Plus 1100 UL pump, then put a ball valve in between the pump and slot pipe to knock it back a bit, and when you get a lot of growth and your flow is more even and consistent, open up the valve and your growth will be awesome.
5) adding more length to the screen is fine. Just remember you will then need a larger pump (possibly)