So, got a new pressure gauge, & just did the DE test. 3/4 cup of DE seemed to hold - pressure just increased by 2. Good, right?

1. Will this help filter out what needs to be filtered out?
2. I have bought a smaller pump - 1 HP pump w/2 speed - which the pool store guy said was more appropriate for my filter size. He said this was likely the problem. So, that is my long term solution. What do you think?

Is there something else I should be doing?