The chocolate chip will have to go. Eats corals like nobody's business! Your fish are fine.
Refer to the earlier comments about medications in the tank, esp. copper. If you are unsure, get yourself a Poly Filter Pad (made by Poly-Bio Marine, Inc.) This is a white absorbant pad, you can place it in your
biowheel filter (cut it in half...one piece in each chamber) and see if it changes colour. If it turns blue at all, there is copper in the tank, and you'll be best off starting from scratch.
If there's no copper or heavy metals, increase your live rock volume to about 1 lb per gallon (not an exact science here....), take the bio wheels out of the filter (rock is your "bio wheel" now...) and perhaps add a couple of powerheads for some more flow. I should also note that if you are adding rock to a tank with fish in it - make sure the rock is CURED -- your nose will tell you if it is really cured or not. Cured rock smells fresh and salty -
uncured rock STINKS. Adding uncured or partially cured rock can cause an ammonia spike and harm your fish, so if you must, cure the rock in a separate vessel with saltwater, powerheads, and a skimmer if possible. You can add small amounts of cured rock to your tank at a time, until the desired amount is achieved.
Do upgrade the lighting - that's a MUST for photosynthetic animals, and S-L-O-W-L-Y start adding your corals and inverts.
Most importantly - research the animals you buy before you buy them. Often the "prettiest" ones are the toughest to keep (Goniopora sp, Cataphyllia sp and Tubastrea sp. come to mind - pretty but often a waste of money if you aren't up to their challenges, and some just don't seem to fare well no matter what).
Have fun!
Jenn
