You've come to the right place for advice! First of all get the 65 gallon tank, the more water volume you've got the more room for mistakes you have. You might not have as "much" room but you'll find that most tanks take up very little. 65 gallon is a four foot tank, which could be a problem with your fish stocking list that you've come up with. The tangs will need at least 2 more feet of swimming room, (check out my profile on the pacific blue tang in the profiles section and you'll get the jist of why). Flame angels are perfect for fish only aquariums but not the best choice for reefs or liverock (mainly because they can pick on corals that you put in the tank or are hitchhiking on liverock). You can get lucky with these guys however and have them never pick on a coral. A clownfish would also be a good fish for your tank, as well as the wrasse and the goby and the firefish, I would however skip the yellow tailed blue damsel if you get the firefish (fairly delicate fish). 7-8 fish is not a great number of fish for this small tank anyway. I'd shoot for 6 smaller sized fish. In my 55 I have 5 (a pair of banggai cardinalfish, a flame angel, a purple firefish, and a cleaner goby).
As for the nitrite poisoning, less suseptible, more suseptible to ammonia. Read my starting up a saltwater tank article for a breif overview of what you should do (in profiles and stickied in beginner section).
The uv sterilizer is a good idea, but a quarentine tank is better (as small as 10 gallons). Most saltwater fish run in the 10-30 dollar range. check our
www.liveaquaria.com