I am guessing the small leader with a loop is for a loop to loop connection. That is how I do mine.
http://killroys.com/knots/loop-to-loop-connection/If your leaders do not have a loop use a surgeons loop, quick and easy.
http://www.animatedknots.com/surgeonsloop/index.php?Categ=fishing&LogoImage=LogoGrog.jpg&Website=www.animatedknots.comThis is an excellent site for knots.
If it is a tapered leader do not use a swivel. It is heavier test 25 to 30lb at the butt (looped ) end and 16lb at the other. Just tie you fly to the end. After you break off a few times your leader will be smaller and smaller. Then tie a tiny swivel and a section of 16lb tippet. I usually tie on a 24 to 30 or so inch tippet (I would go no shorter) . I like my leader a little longer than 9 feet. so If I broke of a foot of the 9 foot leader I would tie on 24 to 30 inches of tippet after the swivel. Weight goes on tag end at the swivel. I usually take a 3 inch piece of junk line (small lb test) tie it in a circle and loop it to the swivel. That way if the weight gets caught in a rock the small test will break off and you will save you leader and fly
Don't really use indicators that much, but it all goes on water depth. Need the fly where the fish are. Mend the line with or without the indy. Do not want the line pulling the bobber or fly
I do not have really good luck with salmon, but I would use anything from a 6 to a 10 for them. Estaz, comets , popsicles, eggs, beads, wolly boogers , egg sucking leach, even nymphs ect ect ect. All goes on color and size. What they like one day, not so much the next.
Maybe some others will chime on their favorites and such.