If your ammonia is at 1, then there is still a lot of cycling to be done. I dont know about these fish, but if they are not very hardy, then they should be taken back to the store until it is cycled. There is no amount of ammonia that is ok. So by doing water changes [which will prolong the cycling, but its hard to pinpoint how long] the fish will be in 1-3 ppm ammonia for a long time, as opposed to a little higher for a shorter amount of time. The damage sounds like it might be about the same.
When I first started out, I has no clue about cycling. [the store sold me a STARTER kit, and 5 fish!] So I tried the water changing thing and the tank never cycled, and the ammonia never diluted to anything below 1 ppm. Sounds messy, huh?Fishless cycling with Biospira is the way to go IMO.