Is this the ideal setup of DIY reactor and pressurized system?

I have never used a reactor, just shot the gas right into the Eheim intake. Aside from that it looks like you have all you need for now.

The bubble counter shoudl be up so the bubbles go into the bottom and up through the water of co2 solution and then into the open space in the counter and then out the top.

Try starting at about 1 bubble a second. I suggest you start up the system in the morning which will let you test a couple of times during the day. If you are not shutting the system off at night or outgassing using an airstone, then check your levels at a few points over night. I suggest about an hour after lights out, about midway between lights out and back on and then about 30 minutes before lights on. What you are looking for is the pH level. While it is expected to have a lower pH with co2, normally it is not an issue for fish unless the change becomes overly large and even threatens to crash the tank. What you are monitoring is the magnitude of the pH changes.

Just for reference- I run at 1 bps in my 50 gal and the co2 is on 24/7 w/o any outgassing. That tank is one my healthiest and the one where the farlowellas spawn.

Generally, 10-25 ppm CO2 is recommended but that depends (like most things) on who you ask. 30 ppm is another popular figure but this can be dangerous for fish unless you have a good grasp of the other factors working in the tank. I would start dosing low and work your way up to ensure you don't experience any dramatic pH swings. My 125 gallon planted started at 1-2 bubbles per minute. I have fully autmated control however (using a pH meter) and have an airstone for off-gassing in the event of a pH dive.

Very nice Neon!! I like the DIY reactor, and yes you have the orientation correct, this should help with CO2 conservastion greatly. Most people shoot for 30ppm of CO2, and dont rush into getting to that measure in the first day, you want to get their gradually, no more than 1 bps on the fist day for your fish's safety. Also make sure your not using tank water in your drop checker, use a commercial 4kh solution btw.

Yup

Awesome setup, I love DIY projects like this. The amount of bubbles per second always worried me, so I've used the pH meters exclusively....lol...its a lot of $ but its peace of mind thats paying for it.