CichlidFish.com - Fish That Think.

Last Saturday I got a young, maybe 1.5 in oscar.  When I brought him home and acclimated him into my 55, my acaras attacked him, biting his sides and lip-locking w/ him, shaking him like a dog's tug rope.  At first I thought that it was just a little cichlid thing , as they did that when I got my clown pleco too.  and I was delighted to see that he ate that night w/ the rest of the cichlids.  But the next morning I saw that he was hiding underneath the HOB filter overflow, and some of his tail fin was gone.  It was a mystery until the male acara swam very deliberately up and tore a large section of my O's tail clean out.  I quickly netted him and transferred him over to a 20L with a penguin bio-filter and housing just a few danios.  I did a large water change in the 20L and cleaned the filter and treated him with a salt bath bcuz I had read on the box that salt would stimulate the gills and help the wounds heal up.  After his bath I put him back in the 20L and turned the lights off.

The next morning, last sunday, I checked on him and saw that even more of his tail was gone and that he was developing some flecks of white on his pectoral fins and near his dorsal fin.  He was hiding beneath the decor and barely moved when I moved close to the front glass.  I decided that he had fin rot of some type and ick.  I had some Formalin 3 and followed the directions for a treatment bath.  while he was in his bath i added half of what the box said should be used for assisting desease treatment of tropical fish for salt bcuz i thought that half strength would be less stressfull to him yet still help.  When I took him out and out him back in the tank he was less disoriented than before and seemed more alert too.  I turned that lights out early bcuz it would be less stressful to be in the dark.  On this monday morning I saw that the amount of white spots had multiplied but again he was up and swimming a little while after i turned on the lights, when he just sat there yesterday.  when I got back home from school he came out of his hiding to kinda greet me but his tail was just a stub and he looked like he was dipped, wet, into a large container of table salt.  I decided to take action against the ick and used some treatment for "sick,weak, or scaleless fish" and gave him another bath of Formalin 3.
This morning his ick was about the same and his tail too.  But when I came home today he was out to greet me and the outer rays that stretch his fins out looked like they were growing back and he was even more active than yesterday.  I continued the regimin of Formalin 3 baths and treating the tank w/ ick treatment.  It seems to be working, but is there something I am doing wrong?  Something I should do??
PLEASE HELP MY LITTLE LEOPARD!!!!!!!!!!!!!!!!!!!!!!!!!!!!