The layout looks good. As you've discoverved a 10g doesn't afford much working room. Baffle spacing depends on the amount of flow through the sump/fuge you are planning for, up to 300gph 3/4"spacing should be fine, if more than that go 1" spacing for better trapping. Critical lesson learned the hard way, 500gph through a 10g sump is a little much.

If you are looking for more ideas on the design side look on page 2 of this thread.... I tried to get the max amount of volume for the refuge as possible out of a 10g sump, running just under 19g total volume for a 10g display.

http://www.captivereefing.com/viewtopic.php?t=1833

Things have changed a bit since then, but the layout is still the same. Been a while since I've updated that thread.