Yeah, the AC 110 will be splashing water everywhere. Too much flow IMO. Along with the powerhead! it would be chaos. An AC 70 should be enough flow, if not, have a PH on hand. But for LPS you don't need MH. All you need is 65w PC's as stated above. I like a more blue look, so if I were you, I would get a 50/50 bulb, and an actinic. It will give a nice, blueish tint. It will make it look really nice.
But I am a fan of T-5's to PC's. They run really cool (temp), and are super bright. If you have the money, I would definalty get this fixture
http://www.drsfostersmith.com/Product/Prod_Display.cfm?pcatid=12772&N=2004+113175
If you dont have the money for that, then PC's will be perfectly OK for what yor looking to have as far as corals. Here is a good fixture
http://www.drsfostersmith.com/Product/Prod_Display.cfm?pcatid=12109&N=2004+113345 And it comes with lunar lights, which come in real handy when you want to view your tank at night!
For stocking, corals and fish wise... I think zoanthids look awesome in nano reefs. Just my opinion though. A brain coral or a Plate coral would look nice on the sand bed. All the rest for "on the rocks" corals, I would do things like Frogspawn, Kenya Tree's, things that wave in the current. Those kind of corals make the tank very nice to watch with the waving motion.
Now for fish stocking. I think clowns always look great in nano's, and are great beginners fish. But they are all so common. I would get a Purple Firefish for sure! They are really active, and colorful. Then, maybe you could get some type of Wrasse. A favorite of mine is the 6 Line Wrasse. It stays pretty small, and are very colorful, and active. Plus they will keep your bristle worms under control!
Let us know if you have any more questions Scott!