The overflow (if your tank isn't drilled) brings the water to the sump.
The sump is where the filtration takes place, the water conditioning, etc. The sump also can be used to increase your total water capacity for your system as well.
The refugium is a low current side tank, which is commonly used for filtering plants such as Caulerpa, Mangroves, etc.
Commonly used for the sump is a Rubbermaid container. Water comes in from overflow (mine goes into an acrylic box filled with bio-balls, then drains out the bottom panel), goes through the filtration, then is returned to your tank. I myself, have put a "T" connection, actually a couple, in the return like with a ball valve which supplies the refugium with my Mangroves. This is then overflowed back into the sump which has a 400gph powerhead circulating the water in the sump.
Only modification the the Rubbermaid container is a hole cut in the front for the return pump water supply.
For this particular tank, I use a 5.5 gallon AGA tank sitting about 8 inches above the sump. Being supplied by the return line "T", I have built a siphon overflow system which returns the water right adjacent to the return pump input.
The two most expensive aspects of this type of system is the return pump and the overflow. On this tank I use a Little Giant 5 return pump and a LifeReef overflow. Everything else was purchased at Home Depot for under about 50 bucks or so (PVC plumbing, 32 gallon container, etc).
Also, when I set this system up, I moved it all to the basement, so I had to have the bigger pump to lift the water backup through the floor. Under the tank, I could have gotten by with a pump half the cost of what I spent.
Good luck in getting it all sorted out. It is really (for me) a better way to go.