Hello FishyNewbie, and welcome to the forums!
If your readings are correct it would tell me that the cycle is close to complete with the ammonia already under control, and the nitrite fairly low. The fact that the nitrates are higher than the nitrite (and at 5 ppm the nitrates are
very low - thats a good thing
) is a strong indicator that the bacterial colonies that convert these nitrites into nitrates is well on its way to being established. Knowing that the fish have been in the tank during this time is kind of scary, but it also tells me that the bacterial populations have adjusted themselves to the full load that the tank is going to be seeing right away. It is a 50/50 chance whether or not any of your inhabitants will perish due to the stress and hard to tell until the scale tips in either direction.
As far as the fry go - isn't it great to watch babies grow in your tank?? I shall name them all squishy, and they will be my little squishies!
- any of the adult fish will eat them if the opportunity presents itself, even the parents, and especially the gourammi. Having some plant matter floating at the top of the tank will give them some refuge, but a better idea would be to isolate them in a seperate tank until they are grown enough to fend for themselves.
Go ahead and start trying to feed them. Do not feed them a lot at once, just a little several times throughout the day. Regular flake food will do just fine. Grind it up between your fingers until it is a fine dust consistancy and sprinkle it into the tank. If it is fine enough then the adults will ignore it and the fry will gravitate towards it and it will fit into their little mouths.
HTH, let us know if you have any other concerns, and Good Luck!
) Currently I have 1 dwarf gourami, 1 tinfoil barb (I know it'll outgrow my tank) and 2 jellybean parrots (I didn't know the abuse they go through when I got them, and yes I know they will outgrow my tank) Now my reading are: Amonia: 0 Nitrite: between 2 and 5 I can't really tell what color the liquid is, Nitrate: 5. I've been doing water changes everyday with treated tap water to keep the levels of Nitrite down because I know how toxic it is. My problem today is that I discovered jellybean fry by mere coincidence in one of my caves and now I don't know what to do. QUESTIONS: 1. Do jellybean eat their fry? 2. Should I move the mother/father and fry to another container to protect from tinfoil and dwarf gourami? 3. Should I change the water or will it disturb the new family? 6. Should I add plants into the cave from other parts of the tank to protect the fry? I'M COMPLETLY LOST AND SHAKEN UP AND DON'T KNOW WHAT TO DO. I became very motherly towards my fish and try my best to keep the alive and prevent them from being poisned by toxins. I fed them tropical flakes and bloodwarms (twice a week). I never had fish and now I'm really nervous. PLEASE ANY HELP WOULD BE APPRECIATED. 
One of the most important things a hobbyist can due is the "due diligence" (basic research) before jumping into the introduction of new creatures into the aquarium.
I think you need to come to terms with the fact that your fish may not recover. Do you have another empty cycled aquarium? I do not see many options.
