Yeah, you are experiencing the cycling process. Your ammonias will spike first. Did you find the cycling article on our site? It goes into detail about how you should go about setting up a new tank, and all about the cycling process. How much salt are you putting in your tank?
Your fish were surfacing because they were trying to get oxygen. You should have an air stone in the tank if you don't already. Cloudy tanks are usually caused by ammonia. Follow the instructions on the link below to avoid fish kills. Ammonia poisoning is the number one fish killer.
The gravel you used from the old tank will help with the cycling process, but it will still take time to establish.
New Aquarium Setup

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Phishie
Site Coordinator

"An ounce of prevention is worth a pound of cure."