Thanks for the pic. What lighting do you have on the tank? In my opinion the coral is getting way to much light. These corals, especially when they first come into the hobby, are very sensitive to light. I believe its tissues have been oxidized by this over exposure to the lights and is very delicate. Any contact from tank mates or chemicals in the water (chemical warfare) will cause the coral to extrude these tiny white worm looking things. It is not showing signs of an infection, yet. If the coral is to survive, it must be in an environment with very mild lighting and protected from tank mates. Hermit crabs, shrimp, or fish can all be deadly to this coral in its present condition. This coral is ill. It can not be treated like we would treat a large healthy Elegance. Unfortunately the community tank with bright lights is not the place for this coral right now. If the proper care is given, I believe it can survive. I have brought quite a few Elegance corals through exactly what your coral is going through. There is a thread here in this forum called "Elegance Coral Theory". If you skip to the last few pages this thread may be helpful. I hope this information helps you and your coral.
