Am i seeing 5 fish in a 29 gallon w/ 1 pound of rock? If I am, please don't take this wrong but, DUDE!!! Cmon, you are doing it ALL the wrong way.
Even if you had 10 pounds of live rock, that would still be too many fish too soon.
FORGET THE BACKGROUND for now. Focus on getting more live rock. Right now, you have relatively NO surface area in that system except for the sand and the sponge in your penguin. You have MINIMAL biological filtration. This will prove to be very detrimental to the health of your fish. Aside from the biological function of live rock, it has other benefits. I bet your fish chase each other around and some of em fight over that one rock right? Does one or two of em hang out in the corners all the time? Does that little black damsel kick the crap out of some of the other fish? Well, liverock also provides more "physical" room for your fish in the same tank. By having enough live rock, you provide a home or hiding spot for everybody in there to call their own. That is important. When you have limited cover for the fish, no matter how much filtration, or how big a sump you have, the fish will run out of room whenn they are looking at nothing but other fish swimming in their way. When that happens, they fight. Then they get stressted out. Then BAD things happen. Please, get the live rock, like, yesterday.
Get a protein skimmer. With that many fish in there (don't forget, they grow), you want to pull as much disolved organic matter out as you can, before it has a chance to nitrify in the system.
You really should not get upset when you see this, you should listen. Try to learn from other peoples' mistakes before you make your own. This is not meant to be a cheap hobbie. When you skimp on important things like bilological filtration and skimmers, you are just wasting your money by buying those fish, because most of them WILL die, if not all of em. If you want to take this seriously, you are going to have to get these things. There are many good deals on the web, so start surfin. I'm here to help if you would like to see your tank flourish. That's my $.02...