External parasite?

[dive girl]

I'm not sure what is wrong with my Royal Gramma. I've got a photo attached.
The symptoms that I've seen is translucent-white spots (remind me of blisters a little), appetite has decreased, and fish has fins clamped and scratches often. This morning the fish was lerthargis and had labored breathing.
I have fish and inverts in the tank with soft corals and LPS.
The tank is a 30 gallon and it has been running for about a month. The water parameter have always been good. Yesterday the nitrite went up to about 0.12ppm. Restested nitrites this morning still at 0.12 (my test kit does not have a reading at that amount just starts at 0 and then goes to 0.25. The color falls between the two, not quite 0 but not 0.25.)
Yesterdays test results were:
temp 79.9
pH 8.2
salinity 30
sp. gr. 1.024
ammonia 0
nitrates 20
nitrites 0.12
I started treatment today as I noticed another fish scratching. I've lowered the time that the lights are on to 4 hours per day and started with a medication called "Rally".
Not the best photo but the best I could get. The discoloration is up around the gill area.
Thanks for any advice.

 

[beth]

I can't really see anything in that picture, but I'm assuming from your description that the fish has ich.
What are you treating it with??

 

[dive girl]

I'm treating it with a medication called "Rally". I wasn't sure if it was Ich because it doesn't look like anything in any of the pictures I've seen. I've read that it looks as if salt or sand has been sprinkled on the fish. This doesn't look like that.
The discoloration around the head and fins, shows up darker in the photo is where there are blister like bumps.
Here's another photo, the areas of concern are the darker parts around the head.

 

[beth]

Those spots look more like scales missing. Hyposalinity is the best choice for treating ich. Take a look at the FAQ Thread, top of this forum. Also, there some examples of ich in the Diseased Fish.