Questions? Fish, creatures, water? Assistance!

[cirionrc]

I have a few questions. Well The other day I put some big chunks of live rock ($180 worth). There is a unidentified creature on it. Stuck to the rock and look like a little limp penis but white facing upward about 1/4" long. Sorry, that is the closest relation to what is looks like. Anyone know what this is and should I remove it, cause it look like something is in it? Another thing, my 2 damsels are always going up to my snowflake moray's head swimming backward to him and slapping him in the face with their hind fin. What's that all about? Tommorrow I am taking the eheim canister filter media out of the canister and rinsing it with tank water. All of it and replacing the filter floss. Then cleaning the green algae off the glass (finally green algae) and then a 20% water change with distilled water. Is this safe to do and is this the correct procedure. It has been three months. Oh yeah and should I use distilled brand or drinking water brand for water changes? Another thing, I saw someone saying that soft corals do not require to have a lot of light. Would like to experiment with a coral in about a month and see how it does.