Great work BRS and Randy!
I have been running refugiums with chaeto for many years. I also use mud in my refugiums. On my 120 gal, I am running a 15 gal refugium which is only 10" deep, so actually 22"x15" surface area exposed. My high rate of return from display is also split, so not all the returning water goes through refugium thus increasing contact time. I light 24/7 with a pair of 65w PC's, a bit outdated but I am in the process of changing to LED's.
Pictured above is about a months growth in the chaetosandwich alone, there is another large growing clump of chaeto on the right side of the refugium. This 120 has no nitrates, although the phosphates fluctuate between water changes, sometimes as high as 1. The fish and corals are fed 2 cubes of regular mysis and 1 of piscine mysis, skipping frozen foods every 3rd day and feeding nori and pellets on 3rd day. Water changes, 30 gal or app. 25% once per month.