Hi there! Welcome to the forums! Sorry that no one answered this thread when you had it up. It certainly slipped by me. I hope you come back and check on this thread when you get the opportunity to do so.
You have a wonderful lighting system. With that lighting system, you should replace the bulbs once a year. If you haven't done so already, you need to go ahead and do it. Also, if you haven't done it yet, put your lights on a timer, no longer than 8 hours a day. That red algae you have is called cyanobacteria. Cyano is quite common in tanks that have lights on for longer than 8 hours a day, a large amount of nitrate and phosphate in the system, and low water flow. Before your corals can grow and thrive, you need to bring your nitrate and phosphate levels down.
First and formost, when you use tap water, you are adding nitrate and phosphate to your system. Nitrate and phosphate causes algae growth and inhibits coral growth. It can also be detrimental to your coral and fishes overall health. Nitrate and phosphate can also be introduced into your tank by excess amounts of food and bad top off water.
You need to switch your top off water to pure distilled or RO/DI water that you can buy at a water store, grocery store, or your local Wal-Mart. Also, all the water that you mix for your water changes should be RO/DI water. This ensures that you are not adding any excess nitrate and phosphate and other toxins/chemicals/heavy metals into your system. It will also help you start cleaning up your tank and getting rid of that red cyanobacteria algae.
If you don't already have test kits, buy a Reef Master Test kit by API. It has liquid tests for Nitrate, Phosphate, Calcium and Alkalinity. Test your water for Nitrate and Phosphate and then post them in this thread. By doing water changes with RO/DI+salt water, using adequate filtration and the use of macro algaes, you can get these two fertilizers as close to zero as possible. Keep testing weekly after your water changes to see if it's going down.
When people say that your water parameters should be as stable as possible, this is what they are talking about:
Nitrate: less than 5ppm
Phosphate: unmeasureable (0ppm)
pH: 8.2-8.3 constant
temp: constant. anywhere from 74F to 84F, as long as it's constant.
Calcium: 440-460ppm
Alkalinity: 8-10dKh
Magnesium: 1350-1400ppm