I have a ten year old well 240' deep with a Franklin submersible pump. It has a Well Rite 140 OLC pressure tank and a Square D pressure switch. 250' to house, 125' of 1' then 125' of 3/4". It averages 8 GPM; pressure gauge reads 30lb when pump is on. Pressure has always fluctuated with poor pressure at the house.

Pump will run out of water if you run it for more than 30 minutes. Water is undrinkable, leaves buildup on all faucets, shower heads, toilets etc. Hot water heater, washer and dishwasher average 3 years before replacement.

I now have the budget to upgrade the system but, not the budget to pay to have it done. I plan to install a 550 gallon holding tank and reduce the flow to the tank in hopes of not running the well out of water. Then install a jet pump to increase the house pressure and hopefully stop the fluctuating pressures.

I have spoken to two plumbing suppliers and have two different ideas on how to set it up. I made a drawing of the last guy's idea but I'm not sure if I got everything laid out the way he explained it to me or if all the accessories are correct and in the right places.

A couple things I'm not sure of:
He said I would need an UP float valve and a DOWN float valve?
I'm assuming the pressure switch at the submersible pump controls it. What turns on the Jet Pump or is there a certain type of jet pump required?

http://eepurl.com/c9vg

Any help anyone can give me would be greatly appreciated.
BJ