Not sure how to use filter floss

[oakengineer]

I'm working on retrofitting an operating custom 15gal sump/refugium with filter floss instead of filter socks. I liked the filter socks, but they had to stand up higher than the top of the sump, which was a source of overflowing and sending water everywhere.

Here's what I have right now (although my chaeto never took off):
http://i.imgur.com/vIS8wwv.png

Here's a first cut at what I may do:
http://i.imgur.com/U1EsUqH.png

Questions:
1) Should the filter floss be above, below, or even with the water line?
2) Is it ok that the water can just kind of run off the filter pad? Should I put some kind of lips around it?
3) In terms of flow, is the 9" baffle "in the way"? I can tear it out, but I can't put it back in without dismantling everything.

 

[Mark9]

I've seen this done.
Filter floss was above the water line and there was no lip.
Low tech, but it works.