You could get a bottle of bio spira and see if that will settle your tank.
I have used tap water, and been perfectly fine, but I have really low TDS.
A RODI system will only make things better, but may not solve all your issues.
If I were you, I would go buy a tank at petco while the sale is still on, a cheap heater powerhead/airstone and a HOB filter.
I would move my fish, coral, anemone and light over to the QT and I would let your 40 cycle.
(Please read a "how to QT" thread if you're going to take this route. We handle ammonia in different ways depending on your QT methods. It's very important.)
To me, it sounds like whatever bacteria you had in the tank, has been regularly having large die offs from the prime, which would release more ammonia.
Especially if you're dosing more than you need to, as the excess will stay in the system and neutralize any ammonia the fish are producing.
Further more, I believe that the API ammonia test kits read bound ammonia, as well as free ammonia. Meaning it registers the previously neutralized (by prime) ammonia as free and toxic ammonia.