Cotton Looking Stuff in Tank

I removed the one bulb which had the fungus on it and it smelled really bad so I threw it away. I also went ahead and removed all the other bulbs I had in there except for the one that has sprouted. That one is up to about a 3" or 4" stem now. Growing quite quickly. Also, for a correction, I have had the tank for about 2 weeks, not 1. I think the tank might still be cycling, because the water smells bad. I have been doing water changes a few times a week. Right now the water doesn't seem to be bothering the fish. I have 1 small angel fish, currently recovering from fin damage from a catfish I used to have in there who killed the rest of the fish I had, 1 small frog, a small violet goby, and a few guppies, 1 male 2 females.
 
When I left this morning my tank looked ok but did have a little bit of cottony stuff in the bottom. Now I just got home about 9 hours later and there is cottony stuff all across the bottom of the tank and there is some cottony looking stuff on top of a pregnant fancy guppy that I have in a floating breeder inside the tank. Does anyone know what this might be? An article I read at www.bestfish.com about overfeeding says:

"Little patches of fungus or mold will occasionally be seen growing on the gravel and plants. This is directly attributable to uneaten food. Where a flake or grain of fish food falls to the bottom or sticks to a plant, a little patch of white cottony stuff will sprout up, grow for a few days, and then disappear when its food source is used up. It may of course be replaced by others if overfeeding continues."

Should I wait it out and feed the fish very little for the next few days. I think I might be overfeeding them. But why would I have some on top of the fish. Could a flake have landed on his back maybe? I'm going to run out to Wal-Mart later (about 20min. away) and get something for fungus in a fish tank. Don't know if that will work or not. Any ideas? Anyone had this before?
 
do you have any wood in your tank at all?
 
Fungus or Columnaris

I just got an Ammonia Quick Dip Test by Jungle. I've heard the strips are inaccurate but this is all I have to work with for now. The test showed the ammonia in the danger zone at 6.0. I still have the fungus on the bottom of the tank and on the one guppy. The fungus on the guppy appears to be eating away at his back. I bought Fungus Clear by Jungle. It said to put in 1 tablet/10gal. so I put in one half tablet. It fizzed like it said on the package. I noticed some stuff that looked like blue ink coming out of the tablets in small amounts at a time. I'm going to try to feed them once a day very lightly. Just enough to keep them alive. If the fungus does not appear to be going away off the fish by tomorrow, I will buy some aquarium salt and use some of that in the tank. I removed the filter cartridge because it has the carbon in it. I replaced it with a sponge I just bought made for cleaning algae off acrylic tanks. I left the bio-wheel in there. Should I remove it? Also, I have a fiddler crab in there, will the chemical hurt him? I might try to put him in a small container for the next day or two. I tried to take a pic of the fish, but I couldn't get a clear shot. Here is the best 2 out of 5:
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