Ok so here was the ultimate answer. Did a DIY.. Added a tower to the sump to hold LR rubble with teeth at the bottom. I do have a filter sock over the overflow pipe to catch left over food after feeding. (I took tower idea from Melev's site and how he has updated my sump that I have). Then I added a 3/4 u-tube (so I have the 1.25" U-Tube that came with the LifeReef and the new one) to increase the flow from the inner overflow to the outer overflow. I then also stuck the "silencer tube" into the inner overflow box. I can now run the overflow at about 80% of the 1" PVC without getting bubbles and have the return at full bore.. (I am thinking of taking some clear PVC tubing this weekend, filling it with sand, heating it up and bending a 1" U Tube)..
As an additional precaution just in case bubbles do happen during this trial period, I placed a layer of floss between the skimmer section and the return section to hopefully break the bubbles or trap them.
All seems to be working smoothly as of tonight.. (we completed the final installation of the floss)..
Thanks for everyones help..