I totally have the same thing going on in my tank. I fishlessly cycled it, its been done with that for about a week. But part way through it I saw the same white stuff on the driftwood that it sounds like you have. Its white and spiderwebbycloudy like but when you pull it out its much like snot. Right?
Well I posted on a couple boards and was told that this was a fungus most likely, possibly a bacteria, and that it will go away as the tank stabilizes. It is harmless to fish.
So...I didnt do anything except scrape off as much as I could from time to time. Since I put the fish in, I only scrape it off when I change the water so I can vacuum up the pieces. And the fish is fine so apparently it is harmless. And my water parameters are good.
It is slowly going away. Each time I scrape it off it grows back more slowly and there is much less of it each time.
I boiled my wood first, so I doubt doing that will help you any.
Thats been my experience with it...basically time and good aquarium/fish-keeping practices will eventually do the trick.
HTH