Hi Dan
You might want to do a search on "overflow" and "sump" here, you'll come up with a lot of reading material and pics of how folks have set up their systems.
If you have a glass tank and it doesn't have drilled overflows, you'll have to use the "j" or "u" tubes and an overflow box that will be plumbed down to the sump. If you have an acrylic tank, you can easily drill the holes for the overflow and just run a piece of 3/4" or 1" tubing down to whatever container you choose to use for a sump.
As for your Fluval, I believe the 304's are inline only, not submersible. They also only pump about 250-260 gallons of water per hour.
Premium Aquatics, one of our sponsors, carries Magdrive pumps, the 950 might be a good choice at $70. They also carry Senn pumps and while the 700
might work, I'd go for the 900. They range between $70 and $80.
The pump I've been looking at though is a Custom Sea Life T-4 which turns over about 1,200 gph. I have a 125 though so you might look at the T-3 but it only turns over at 800 GPH. Rule of thumb is 10x the volume of your tank per hour but depending on your set up and animals, some people go higher or lower. SPS like high flow, softies and LPS can do lower flow.
Then of course, you can always add a pump for a closed loop...where the water just gets circulated through the tank and use another lower-rated pump to go through the sump. If you are going to set up
macro algae and critters in the sump, you don't want the water flowing too hard through there.
HTH,
Alice