#1, yes, long tentacles.. I have 3 or 4 in my tank and each have like 10 tentacles each.
The black/white worm just moved through the sand. It didn't slither like a snake side to side. It was almost like it had little feat under it because it would go under sand for 1 inch and then come right back up. It also almost got to some rock looked up (it has a black head / mouth) and then retracted back to the exact path it took and then went a different way. It would stretch out to about 4-6 inches and then when it retracted back it shrunk to about 2 inches.