frozenguy,
It is kind of irrelevant whether the tank cycled now or not. Obviously, it was not cycled with this bioload, because, in a properly cycled tank, the ammonia doesn't start to rise almost as soon as the fish are in there.
But in addition to the questionable cycle, you have WAY too many fish in that tank for a newly cycled tank (actually for a 25 g in general). If I am not mistaken, you have 7 fish in there...the eel, the 2 clowns, the angel, the dottyback, the blenny thing for your friend...and something else I think. WAAAAYYYY too much, even in a properly cycled, very mature tank. You should not, IMO, have more than 4 small fish in that tank when finished, and the eel and angel should be the first to go. That is almost another problem entirely.
How did you cycle the tank, with LR alone, or with shrimp, etc? LR alone, IMO, is less desirable, because if you get partly cured LR, the die off won't be much...and the LR can handle it quickly. You see an abbreviated, low grade spike and cycle. This often is misleading, and people do exactly what you did...go put a bunch of fish in and then the tank really cycles. The test comes when a serious ammonia burden is placed on the tank (which is why I always recommend people push the tank with raw shrimp or something). Now, had you started with 2 fish- the 2 clowns, I don't think you would be in this situation. Patience is the golden rule. And lack of it is often fatal, especially in small tanks that are easily overburdened.
Now, if you had a decent LFS, this would have been much easier. But you don't. That is very clear.
You will have an uphill battle now. A very steep hill too. If they are good, as you say they are, they will take the fish back, or at least hold them for you while the tank stabilizes.
IMO, the only real solution now is to take some fish back, because if you start causing the pH to fluctuate by doing rapid water changes, which you may end up doing, that ammonia becomes even more toxic, not to mention the stress of water changes on new animals, in poor water, in a small crowded tank.
Please consider taking some back. Seriously cut back on the feeding, get some more LR or Cycle, do water changes...but the best bet is reducing that bioload.
17 days! How did you start your cycle, with just the live rock? And you have 3 fish and an eel right now! A rash move. I would say you have moved way to fast here, you haven't even hit the algea stages yet. On average it takes at least a month to cycle a tank, depending on other factors ie...amount of liverock, live sand, filtration...etc... You have moved to fast for your bioload to handle and you may be in for a rough time.
