So recently I set up an aquarium, with one of those DIY kits from walmart. I added 5 fish, which I was already told was too much but its too late for that. I set it up normally, let the tank run for a few days, and then added the fish, for the first few days the fish were doing great, I had some crazy ammonia spikes according to the tests but I assumed that was a result of no bacteria in the tank. Then it started getting bad, one of my fish died, and I think iw as overfeeding at that point, so I took the fish out, and did a 75% waterchange, I let the temperature get back to normal, and added the water conditioner and re-added the fish.

Then one of my catfish died, I assume due to shock from the waterchange, then I replaced that catfish with the same species of catfish. I took the water to be tested to the pet store, and the guy said I was okay, and I was going to have ammonia spikes because of the lack of bacteria, and to make sure I don't over feed and do water changes. A few days later I noticed white spots on my catfish which I believe to be Ich. A few of the other fish have it on their tail fin (2 dalmatian mollies). Now, all my fish except my angelfish are resting on the bottom of the tank, and look absolutely miserable, I began the Ich treatment today, and it says to do a 50% waterchange 24 hours and then add more the following day.

I don't know what I'm doing wrong, I don't know why this is so difficult for me to grasp, but frustration is setting in...

I hope one of you can point me in the right direction...

Thanks in advance...

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I had catfish too and the same problem. No matter what I did they died.
I heard it is best to use polar (spring water) and make sure it is room temperature.
My water would cloud within days. One thing I noticed is the colored gravel people put in the tanks holds the dirt and the dye also releases into the water. I started using natural pebbles.
Snails also helped my tank.

I don't feel you're doing anything wrong.
What seems to be the problem to me would be that the tank is not cycled yet. Ammonia is toxic to fish and causes stress and disease outbreaks.
It's impossible to avoid ammonia and nitrite (the second toxin developed in the aquarium cycle) and the more fish you have, the higher the toxins will rise.
In some cases frequent water changes can control the toxin levels enough to prevent stress and disease outbreaks and everything will turn out peachy
Like the pet store told you, but sometimes this happens.

Since you have a good amount of fish and they are being treated for an illness, I'd suggest buying bottled bacteria to aid and speed up the cycling process.
Biospira and Cycle are two great products. They will speed up the cycling process and lower the toxin levels while the cycle develops.
Buying the bacteria literally takes away 4 weeks of cycling and is worth the investment especially if you are frustrated.

Good luck to you and your aquarium.

If the fish don't have ich it could also be parasites. Did they dart around wildly in the tank before they started resting at the bottom?

Where are you buying your fish. You may be bringing deseases in with the new fish.