Confused

That is definitley cyano and no you don't want to encourage it's growth as it will smother everything eventually. I don't think your lighting is the problem but if it was just introduced it could be just an algae bloom from the new lights. Do you have any livestock right now in the tank...if not I would cut back on how long the lights are on...this may help, increase the flow in that area because cyano loves dead spots in the tank and I would try to syphon it out with a water change or take the rock out and remove the build up before it spreads. I have not had this problem so hopefully someone with more experience can chime in. Try sending a PM to matt, amcarrig, or tangster.

 

I've got to second what Nemo said. Make sure you have flow in all areas. If you have that much cyno in what looks like wide open areas of your tank you need to up your flow.

 

Forgot to mention the live stock that is in the tank.

1 emerald crab
2 peppermint shrimp
1 Foxface Rabbitfish
2 Engineer goby's
1 Lawnmower blenny
8 Asteria snails
6 nessarius snails
5 cerite (sp) snails
2 mexican turbos
4 scarlet hermits
3 electric blue hermits

and some little bity white termite looking things that i see every now and then on the glass.