The API test kit measures Total Ammonia. Ammonia in a tank exists in two forms unionized (NH[sub]3[/sub]) which is extremely toxic to aquatic life and as ammonium (NH[sub]4[/sub][sup]+[/sup]) which is not harmful. Combined they equal Total Ammonia as read by the API test kit. How much of the total ammonia is in each form is dependent on the pH and tenperature of the tank (pH is much more imoportant). As these two parameters rise, the amount of the bad ammonia rises.
What this means is that for any given level of Total Ammonia, whether or not it may be harmful can not be determined without considering one's specific tank pH and temperature. This has been a known scientific fact for a very long time. It is very easy to put ones hands on the tables that exist for determining how much of any given total ammonia level may be the toxic form.
If you check the tables for a the readings given in the initial post by HM of the numbers (a bit confusing) say the pH is either 7.6 or 8.0 (the confusing part) and the Total Ammonia level is .25 ppm and there is no temperature info given. What the chart indicates is there is not enough toxic form ammonia at any temp up to 86F/29.4C for any pH level of 8.0 or below for .25ppm Total Ammonia.
One can find the toxicity charts for Total Ammonia levels between .25ppm up to 8ppm (a level one should never want in a tank) here
Ammonia Toxicity
NH[sub]3[/sub] is considered harmful at 0.03ppm or above in these charts. Here is what the Merck Veterinary Manual says:
Test kits used for aquaculture do not measure NH[sub]3[/sub] directly but instead measure the combination of NH[sub]3[/sub] and NH[sub]4[/sub], referred to as total ammonia nitrogen (TAN). A TAN of 1 mg/L is usually not cause for concern unless the pH is >8.5. However, if the amount of NH[sub]3[/sub] is increased, an explanation should be sought. The amount of toxic NH[sub]3[/sub] present can be calculated using the TAN, pH, and water temperature. When NH[sub]3[/sub] levels exceed 0.05 mg/L, damage to gills becomes apparent; levels of 2.0 mg/L are lethal for many fish.
The charts I have linked are more conservative than the Merck Manual.
So HM, you really needed to do nothing based on your initial post.