Yeah sumps are a bit different and sometimes weird to understand at first. This is my first one. There are many reasons for using a sump, for one, they lend themselves more to DIY and customization. But some quick benefits of a sump:
-more water in the system
-water level remains constant in the display tank (evaporation only shows in sump)
-hold equipment like heaters that would normally be an eye-sore in the display tank
-easy access for taking water samples or dosing meds and ferts without spooking fish.
Probably more, but those are the highlights.
Diana - yeah the eggcrate basically provides a solid backing for the floss. It pinches it around the perimeter between the lid. I dont think the potscrubbers alone would do this, they would probably put more pressure in the middle and 'blow out' the floss out the opening. I am sure there are other ways to do it but this was just simple and easy. Your idea of ziptie and sandwiching them together sounds like it would work well. The totes I used had a sort of shelf at just the right position so the eggcrate would hit that and leave just enough room for the floss. I have used eggcrate for all sorts of stuff in the past so I have a few partial sheets around. And the boxes arent really full of potscrubbers - I bought all the store had twice

And great suggestion with the Vaseline - I hadnt thought of that. Sometimes when pvc is together for a little while it does stick. I will probably try that.
Shari - yeah they are not water tight. But it is under suction (plumbed into the return pump). Since the sump tanks will be full of water (not shown in the pics yet) if I get a little bit of water sucked through the seams its no big deal.
Loachmom - Yeah you have figured it out correctly. Its a bit more complex but you got the idea. I will try to draw up a diagram showing how the overflow & sump works and how its configured in my tank (many different ways to do it).