help me with my male dwarf gourami!!!

[stunt 101]

i dont have a camera on hand but i will try to explain this as best as possible.
my male dwarf gourami has a reddish fleshy ballon growing on his upper lip. it has been steadily growing for 2 weeks and it looks like today has actually scraped/tore off most of it off on something in my tank. i got my water tested yesterday at the lfs and i was told i have high ammonia. so today i did a 25 percent water change and hope that helps the water quality. the tank has been cycled so i dont know where the ammonia reading came from, ( i also have no nitrites, and 20 ppm of nitrates.) i dont know if the tank is cycling again or what but i think dwarf gouramis are picky about water quality. also the guy at the lfs said it might be a tumor? weird. i was guessing a parasite but i have no clue. i also added some stress zyme for the slime coat and melafix for diseases. i dont have a hospital tank so i have to treat the whole tank with the stuff. please help asap.
thank you very much in advance.

 

[travelinman1969]

If you don't have nitrites and you do have nitrates I have a hard time buying that your tank has that much ammonia. Time for a second opinion. I take it this is the 29 gallon. Any other signs from the others? Any fighting? Sounds like it could be cottonmouth but hard to tell without a pic. Any whiteish puffing around the sore? Otherwise sounds like he hit something hard. The melafix will take care of that but it could be something more serious.