Just thought id give an update to those who use the search like I enjoy using.
As of today tang is doing great. He has finished up a tank transfer method a week ago along with prazipro and will probably be going into my main tank in the next day or two.
My theory on the bloody mouth may have been bad water quality, possibly ammonia poisoning, as once I moved him to a new tank with fresh tank water added some paraguard and after about 3-4 days the bloody lips went away. In my panic to do something didn't test the water quality so can't say for sure but I guess when in doubt get them into new, fresh, safe water to start.
Thanks again to all who supplied input