If you are seeing spots on everything, looks like grains of salt, then yes it it ich. I cant say whether your shrimp and fry will live, but I can say that if you dont treat them with something they will almost certainly die. Now with that being said what you have to determine is which med is the lesser evil. I highly reccomend the salt heat method. IMO, it is the least stressful of all the med choices out there, and the most highly effective (at least of the meds I would even consider putting in my tank).
Read this: http://aquafacts.net/wiki/index.php/Ich
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Read this: http://aquafacts.net/wiki/index.php/Ich
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