The cuts look like insect damage, so check that out The rest of the plant looks like a N def possibly. Don't worry about the tap water for now, just make sure the PH is around 5.8-6.0 for hydro. Later get some de-chlorinator from a fish store so the bacteria at the roots doesn't get wacked. The plant will go through an adjustment when transplanting, especially going from soil to hydro, so expect a little shock, and I would go to 1/2 strength now with the nutes, and build up to full strength in the next week or 2. Also, fill those baskets to the rim with the clay, and bury the plants as deep as possible, just keeping the lower leaves above the stones. Make sure you add Cal Mag to your water, as that is very important in hydro. I would also get rid of the rocks and sand, as they will affect your PH, which is crucial. You'll do fine. Peace out.