Hey Ferdie
It sounds like you have the herbie drain right. Two drains, the shorter one restricted and submerged, the taller one a little above the water line.
I'm with Mark on the tank-sump flow rate, 500-1K GPH is fine. I use a 1262 on my 300g. If you have chaeto or rubble in your sump, like I do, you may want to add a power head down there to keep it from fouling. I run the exhaust from my skimmer to the other side of the sump so the water flows across the rubble bed before it re-enter's the skimmer or exits the sump.
If you have an external skimmer that draws from your sump than your flow rate through you sump should be at least as high as the manuf recommended flow rate through the skimmer. If the flow rate through the sump is significatnly lower than the flow rate through the skimmer than you'll have very clean sump water and not so clean tank water. In theory this relationship is true for in-sump skimmers too but most don't publish their water flow rates. Its usually about 2/3 the skimmer pump's water flow rate.