WARNING!!! Unpopular opinion in the following post.
bio balls have gotten a bad rap. True they can't process nitrate, big woop...neither can live rock, nobody is gonna pull that out of their tank.
That being said they work in mass. A few bio balls in your filter aren't going to make much of a difference at all. Additionally, bio balls work best when they are not submerged. Remember it's aerobic bacteria we're growing (anaerobic is the stuff that can process nitrates), that means they need oxygen, more oxygen=more bacteria.
Bio balls HAVE been called nitrate factories. But of course, that is preposterous. The nitrates in a tank are a direct result of what is put into it. Bio balls don't process nitrate, but it never was their job. Their job is to act as a supplemental bacterial colony to that on your live rock.
Don't be disheartened about your live rock, You'll be noticing new little critters for years to come, but it takes a while. As far as coraline goes those carbon bags are probably sucking out everything it needs to grow.
Side note: You may not want to listen to me, I have no idea what I am talking about. I'm using carbon, and I'm not using bio balls.