Is my skimmer running correctly?

Thanks. It's running much better. It started foaming in a day. I cut the inner tube down to 5 1/2 inches and cut down a bio ball that I placed on the impeller.

 

My ReefOctopus started making foam within hours of being put on the tank.

 

Glad to see you got it skimming properly. Adjusting skimmers can be difficult but once you get it working just keep some kind of note as to how high the water level is. I've found sometimes it will stop skimming because of water level changes and then you have to re-adjust to find the sweet spot again. Not sure if your sump is setup so the water level in the skimmer section is always the same, but that might save you some headaches IMO.

 

When I started, I had mine too far out of the water which created some issues with overflowing as well. Lesson learned the hard way when the skimmate found tank water.