perlite is a no go in this system, you dont want those loose pieces floating around in your lines and it holds water, Guff, fox farms has a soil and hydro formula, make sure you have the right one first, when running hydro systems its important you get a meter to measure nutrient strenght, at first your gonna want to start at 1/4 label strength no matter what brand you use, get a ppm/tds or ec meter (check out ebay for $20), ph should be from 5.5-6.0, forget those STG inserts, even on a youtube STG promo video they had to put PVC inside the buckets to raise the STG so it wont sit in water, but i have read a few forums where not one user of this stuff has even finished a grow let alone had success, use the clay pellets, they are built for the constant flooding and draining, no matter what medium you use it will cost about 7-9 bucks per bucket, go with the clay its easiest and safest, as for the position of your clones, if using rockwool, let your system flood and find the highest flood line, then place/bury your rockwool or whatever you use for cloning 1/2inch above this water line, this will allow the roots to search out for water rather than your clone's media getting soaked, thats not good