Update:
I tested both the ammonia and nitrite using salifert. Both were inconclusive/nonexistent. It's possible I'm doing the test wrong. Irregardless the tank is definately cycling.
The cocktail shrimp is now at the bottom of the rock....turning gray with tons of little holes in it....mmm bacteria.
I'm also starting to see my first real signs of life in the tank..

I could have sworn two days ago something jetted into a little crevice on the top of my LR. My girlfriend and I were checking out all of the little filter feeders and worms that are beginning to extend from the rocks.
Suddenly she says to me...."what's that thing?!?" I struggled for about ten minutes to see what/ where she was pointing at...."don't you see it...?" "the hole thingy" "looks like a hole going in and out of the rock?" I finally saw it....Aiptasia! LOL...I'm probably the only one who's excited to see this pest anemone in my tank ..
Hey it's my first real sign of substantial marine life...
When my cycle is near up, I'll be sure to add a couple of peppermint shrimp and some red legged hermits.
Aside- I was just on wetwebmedia reading all about aiptasia, and one of the "munchers" is the red hermit crab(hairy). I believe the author is making the destintion between the smaller 'scarlet' hermits, but I'm not sure if these are also considered "hairy legged." Anyone know if any of the smaller hermits also eat aiptasia? I know there are other solutions....fish...emeralds...specialized nudis...and concentrated calcium...
I've also started to notice orange and red specks forming on the rocks...I believe these are sponges...

If anyone else has some suggestions I'd be grateful.
I also think I saw a little tiny snail, but I couldn't get a good pic of the little bugger.
On another aside...is it possible that the ammonia is still very low? The tank was born 2/11/05, and the peek of the "smell" so far was last night...a bit of carribean stank if you put your nose over the tank and really sniff....today....smelled like a warm breeze....weird.
My specific gravity is still jumping up to slightly over 1.028 after about 1.5 gallons of evaporation. When I add one gallon of distilled water back to the tank, it levels out right at 1.026. After my first water change this weekend, I'm going to keep the specific gravity closer to 1.025..that way if too much evaporation occurs it shouldn't jump pver 1.027.