I use sheets of nori that are about 4"x4". I put several together, fold them in half, and cut along the fold. this leaves me with 2"x4" sheets. I stack them together, uniformly and then fold them in half, again, leaving a 2"x2" square. I add them to my magnetized nori clip by putting the folded ends in the clip. Finally, using scissors, I cut the folded sheets into thirds with two, evenly-spaced cuts. The cuts are from the bottom, open side going towards the folded, clipped side of the sheets.
What I end up with is many smaller strips of nori that my Tangs rip off, one at a time. Just like you, big pieces of nori get stuck in power heads or the overflow. The smaller strips occasionally go through a powerhead (producing a burst of nori fragments that the fish chase all around), but they don't get stuck too often.