Yeah, I've never had any luck getting rid of red bugs with iodine, and the dips only work for other things (ie flatworms, etc.) if you get them all off during the dip, correct?
A few people in the reef club here in NYC have been experimenting with diluted hydrogen peroxide solutions as a way of getting rid of a host of pests. They are still experimenting, but have had some good results, so I'm hoping they will post some more detailed results soon.