Hi all,
Here is a response from Uncle Scott. He is a well known and respected authority on killies/livebearers/and native fish locally (the Chicagoland area). Some parts were edited, as they were of a personal nature.
"You also were raising the right questions about
specific growing conditions vis-a-vis aerobic or
anerobic environments. It sounds like your filtration
system was doing a great job of getting O2 through the
gravel. I vaguely remember something like this on the
bottom of something in one of my tanks several
centuries ago. Intriguingly, I wonder how those
statocysts got into our respective tanks."

Scott was kind enough to forward my pics and questions to Robert Steinback...who teaches biology,botony, and all manner of related things at Elgin Community college (Chicagoland area) This was his reply!
"That is Plumatella repens. It is the most common
bryzoan in aquaria and ponds. it is harmless as can
be, but has great, "ewwwww" value....it may send
shivers up and down a spine causing a person to stamp
feet uncontrollably for a few seconds. 99.5% of its
victims recover with in a few seconds to live normal
productive lives; sadly the other .5% drain their
aquaria and place them on the curb still stamping
their feet while returning to their front door. It is
reported that these people live empty boring lives.
Fish don't seem to have such reactions.
The colony of Plometella is covered by an undigestible
protein which gives them complete protection from
fish, snails, and shrimp. They filter plankton from
the water by bilateral tentacles and reproduce by a
drought resistant black disc which floats on water and
is in the dust that falls into an aquarium. It is the
size of the resting egg of a Daphnia and is called a
Statocyst. When my students would bring in POND
WATER for protozoan cultures statocysts were always
common, but Plometella colonies never grew in the
protozoan culture until the culture died and the water
became aerobic like an aquarium."
I know that these Bryozoan are harmless to my fish...but my quetion remains: Are they doing any good in my tank? I will eliminate them, if they aren't helping my bio. I'm assuming that answer lies in the posts that have already been made...but my lack of knowledge is preventing me from understanding it properly.
Finally...thanks to one and all for your help!!!

I'm a simple breeder and lack the advanced knowledge I needed in this situation. PC rocks
