Well, first I'd like to thanks everyone for the information and expertise or at least there experience to help shed light on my situation and give me some ideas as to how to get the most enjoyment out of my pool.
As far as how its going, I'm debating whether or not we will try to set up the pool again this year. We got a late start and our seasons for enjoying it is well over half over. Also with what we've tried already, we've exceeded what we've budgeted for the pool. So with the above two considerations, we are leaning toward starting over next spring with our newfound understanding, thanks to the helpful folks here.
I did try the vacuum process, but I must not have the right type of vacuum because it is only designed to pull debris out of the water not the debris and water which it sounds like the type that is described here and what I would need to vacuum the iron out. What I did just seemed to move it from the bottom and mix it in with the rest of the water. So we drained the pool and will try to clean it out and start over with the process. How I wish I knew what I know now when we started this process. It would have been so much easier.

Thanks again.

Kris