I am extremely grateful for your input... This is exactly the kind of help I have been hoping for. Most of what you said confirms what I have been reading.
I want to readdress a few questions. For instance, I thought invertebrates were added before fish. Also I am researching to find a hardy strain of mushroom to add in between 1 and 3 weeks depending on my cycle progress. I was told they were also introduced before fish. Though I haven't had time to research this yet.
While technically inverts can go in your tank first, it is not recommended, mostly because your tank is not safe enuff for them. There may be factors you don't know about that could kill them off. Mind you, thats not including those blue leg hermits, they can go in before fish, and you will have inverts that come in with live rock, they can live though the cycle, but those are the exceptions to the rule. Start with fish, then inverts, then anemones then corals. Thats just the way of things. As for the Mushroom, don't even think about it until week 4. Take your time, doing so will save you money and effort, in the long run. I tried to rush corals and failed miserably. It would suck if that happened to you. Besides, mushrooms are filter feeders, they need you to add supplements into the water to survive. If you want corals that don't nee a lot of supplements, go photosynthetic corals. Don't ask me which ones, i've never successfully kept corals like that.
Also I am hoping to avoid direct feeding by establishing a stable food chain which I think will be possible if I never have more than one or two fish. I am doing research on this but between the amount of algae and plant growth with the introduction of live blood worms and a few other feeder type proteins I am hoping to avoid the changes in water quality caused by feeding. (it will hopefully be more subtle and due to population growth and retractions)
Well, I've never attempted to make a self sustaining food chain/ecosystem. From what I've heard, its not possible. For starters, you will have to fill the tank back up when the water evaporates (use freshwater!) and that will change the water chemistry. Then, it will most likely not be possible to get enuff plants and base of the food-chain life forms to feed your tank. The reason its possible in the ocean is because of the sheer size of the oceans. They have the surface area to support that kind of life, a 20 gal doesn't. And while it is possible to remove almost all need to interfere with your tank by not getting a lot of fish, that only works on very large tanks with good filtration, natural filtration, stable water, natural food sources, and a number of other things i can't remember right now (fail). As hard as this is to say, you are very likely to be unsuccessful. At smallest, i would go with a 75 gal if your going to try for self sustaining, more around 150+(and im probably being optimistic on size...). Sucks, but thats life for ya.
Finally I am happy to report I am getting coraline algae (the pink stuff) and The white conical calcium looking formations and long haired green algae so far on my live rock.
The white cones are sponges, pineapple sponges to be specific. The are filter feeders and will help clean your tank of excess food and nutrients. They are beneficial, and their only threat is to your view. Same with Coraline Algae, but you know that.
I also bought a water test kit and though I know levels may vary greatly over the next few weeks the initial values look like this.
pH 8.2
Temp 76
Nitrites 0.5
Nitrate 10
Ammonia 0.5
Salinity 1.022 (1.023 - 1.025 is ideal for my live rock)
I know these tests don't mean much as they will in a couple of weeks but I thought it might be good to know what I'm starting with.