Also...under the address tab it still shows the .35 in the first address. Is that normal?
It's normal because your coins were never moved from your "first address". The transaction was rejected because you tried to send it with a network fee lower than what was required to get into the mempool at the time when you attempted to broadcast it.
I would suggest you don't view your balance through the
addresses tab and do it through the
coins tab instead. It's much clearer because it only shows funded addresses. The addresses tab shows 30 addresses by default (20 receiving and 10 change addresses).
The
coins tab isn't enabled by default. To enable it, open your Electrum client, click on
View, and
show coins.