Why bomb Phyco? We could have captured tech there. Now we are unlikely to get anything (except possibly the planet of course.) I'd also have timed all my troops to arrive in a single wave from multiple planets, as that tends to be much more effective. Moreover I would have timed the troops to arrive at the same time my fighters did, since we had already scouted the world. I think it will probably be more likely that the Klackon fleet will react to our attacks with this piecemeal approach, and our gains will be less (in terms of tech and time required to rebuild the planet's factories and defenses.)
I would have gone with Radiated over Toxic. It's not that much more expensive, will advance us in the tree as Toxic will not, and there is a nearby Radiated world to our north. But Toxic could work out too. Regarding Terraforming +30, that would have been ok as well. I wouldn't be overly concerned about letting the fact that we will need to build facs and people while at war stop us from taking techs that will improve our economy. We will be at war with someone from now until the end of the game, and we will need to do that anyway just to keep up on research.
The tech choice isn't what I would have gone with but it should be ok, so I'm not worried about it.
The invasion plan could have used some more thought, IMHO. 
EDIT: regarding building more NPG fighters, I wouldn't at this time. What we will need to secure Phyco is a base, more than fighters (unless the Klacks have a new ship design.)
Maniac, up to you to see if we can capture and hold Phyco!
I would have gone with Radiated over Toxic. It's not that much more expensive, will advance us in the tree as Toxic will not, and there is a nearby Radiated world to our north. But Toxic could work out too. Regarding Terraforming +30, that would have been ok as well. I wouldn't be overly concerned about letting the fact that we will need to build facs and people while at war stop us from taking techs that will improve our economy. We will be at war with someone from now until the end of the game, and we will need to do that anyway just to keep up on research.
The tech choice isn't what I would have gone with but it should be ok, so I'm not worried about it.


EDIT: regarding building more NPG fighters, I wouldn't at this time. What we will need to secure Phyco is a base, more than fighters (unless the Klacks have a new ship design.)
Maniac, up to you to see if we can capture and hold Phyco!