I would do the 29 with the 2 10 gal tanks as a sump and refuge. Might be a little tricky to set up at first but would definetly pay off in the end. Just be sure that you have NEVER used any copper meds in the tank as it will kill your inverts coral and live rock. If you are not sure then you could easily pick up 2 new 10 gals for $20. as for lighting I love the DIY MH set up I bought of Dakar and after seeing it I'm sure you could produce one if you are even mildly DIY capable. It would only cost you about 20 or 30 bux more than a good pc fixture and you will be able to keep almost anything you want.

BTW: Imitation is the greatest form of compliment so if you want to try and copy my tank then you better get to the LFS and get some rock!!!!!!! J/K do your research first and take your time, you will be much better off in the end and your reef will look much nicer.