I'm not sure exactly what that is, but it looks like a larger version of a white flat worm that I removed from our wall hammer a few months ago. There were several of them about 1/2" long on the live tissue under the tentacles. Once I removed them, our wall hammer started opening up much larger than it ever had before.
A bigger reason for posting a reply is my interest in the actual coral itself... Is that a metallic frogspawn? We have one, although it doesn't appear to be quite the same as yours. Yours appears to branch (at least by the picture), while ours comes out of a very large disk (almost the size of the palm of your hand). Are the bases of the heads on it large discs, or do they look more like that of more common branching frogspawns / branching hammers?
fsn77: Good question. I can't remember what the importer called it but it was not frog spawn. It is a branching coral for sure (5 heads). The dots on the tenticles actually are yellowy/green and extend all the way down each tenticle. The coral skeleton is actually oval in shape at the mouths and one is in the process of splitting into two branches. The tenticles themselves are more of a pink colour. The tenticles tend to stay quite tightly together when extended. I have what I know to be a frog spawn directly above this coral that is more of a brown body colour with streaks of green. The dots on the tenticles do not extend to the base of the tenticles and they are green. This one has 3 larger branches again oval in shape. The tenticles on this one extended big time and dance around in the currents. I have a third coral frog spawn like coral that has a flatened U shape and stem base. This one has florecent green tenticles with pink dots. I've only had this one for 2 weeks and have yet to see it develop to it's true potential. It extends further every day. I will try and post some pics of the three as they are similar but different if that makes any sense.
Germanman: They slither though the tenticles so I suspect I could remove them. They do move rather quickly and due to their fluid appearance I think removing them might be somewhat of a challenge. The coral does not appear to be suffering and I did not see them yesterday evening. The pic was from Sunday.
i would tend to agree with the earlier posts..It looks like either a nudibranch or a flat worm....can you turn it over and post pic of the other side of it please?