Ross;

That ballast is fine; it will work perfectly for your set up. You also need the parabolic reflector with mogule socket they have on sale for $30, and a 400W bulb; probably try the XM 10000K for $70. That brings your cost to about $160 (extra shipping on the ballast) plus whatever you'll need to spend for a box and wire at H.D. This is the cheapest way to go for a quality mh set up. The PFO option at premium aquatics is about $250:
http://www.premiumaquatics.com/Merch...gory_Code=PFOr

Either way you'll get good lighting. The advantage with the PFO set up is that it's ready to go, and, if you get the parallel reflector, you'll get a better light spread for your tank; you need a fairly rectangular light spread. It'll cost a little extra for that reflector, but it did test better and fits your tank better. Plus, it has brackets for adding P.C. actinic support.

Okay, though, I think you really should get the tank drilled. Tamer, the guy at Aquatic Warehouse, does it reasonably. I don't think a mag 7 is a good choice for a return pump, it's way underpowered for your size tank and will definitely fail at some point if you use it as a return pump. Instead, consider a decent external pump that will put out about 800-1000 gph. It's your choice, but believe me, you'll be much happier in the long run with a drilled tank and a solid, reliable circulation pump. Water flow is every bit as important to coral health and growth as lighting is.