Any additional info on the Aqualifter burning up the JBJ? I've been running that setup for over a year and haven't had any issues. FWIW...I do put the JBJ on a timer itself, so it is limited to running for 15 minutes every hour throughout the day.
That return pump is too big for the 29 gallon for sure though...I would look for another option. If the Aqualifter isn't to your liking, I'd say the 50ml doser zombie mentioned is a good choice too...cost is a bit higher though I think since the aqualifters are dirt cheap.
Regarding setting up the JBJ like I described, check out the manual here:
http://www.jbjlighting.com/pdfs/ATO_Manual.pdf
Set the ATO to Mode A.
Place sensor 1 in your sump (in this case, in your rear chamber) at your desired water level. This will trigger the pump to turn on when the water level drops, and it
should shut the pump off as soon as your water level raises the float valve back up and the float contacts the switch.
Now take sensor 2 (the one the instructions say to put in your reservoir) and place it in your sump as well. You will want it to sit up higher than sensor 1. You will also have to modify the bracket so that you can mount the float switch upside down. What I did was just cut the bracket in half, flipped the end with the sensor on it upside down, and zip-tied it to the other half of the bracket that actually hangs on the edge of the tank. Hope that makes sense. Anyway, since Sensor 2 in Mode A is designed to protect the reservoir pump by shutting off the pump when the level gets too low...by flipping it upside down it will actually shut off when the water level gets too high. Sensor 2 should rarely operate since sensor 1 will be doing all the work...but it's there as a backup in case sensor 1 fails.
Let me know if that explains it well enough or you have more questions