You still only have 50 lbs of rock in there? I'm not getting a warm and fuzzy about the respective increases of ammonia and nitrites you saw. The levels you reported seem very low to cycle a 150g tank with 50 lbs of rock and a few fish as you describe.
Decide if you're gonna keep all those damsels now. You need a lot more rock IMO
, and doing so will make 'dem damsels hard to catch. OK, if you decide to leave them in there, and you got a lot more stocking of new fish to do still the damsels can wreak havoc to newcomers.
I haven't read anyting more than your "My Tanks" profile, but if it were me, I'd remove all the damsels, add about 80 to 100 lbs of rock and re-cycle the tank with uncured rock or the raw shrimp method.
But that's just me. I tend to do things with an eye towards trying to get some finality. Somehow, I feel you didn't create enuf ammonia and nitrite to be finished with the ammonia, nitrite, and nitrate process.