yes. hair algae loves to grow on it, while coraline and other beneficial organisms have difficulty establishing themselves. some of the pieces that i had in my tank became very rusty, so they clearly had iron and who-knows-what-else in them.
it is dense and hard and put a couple of deep scratches in my glass.
I've got two big rocks of it growing in my tank. One has been in there for several years and is coverd in sponges and tube worms on the inside and zoas, shrooms, mussles and coraline as well as sponges and tube worms. From looking at it, you couldn't tell that it was ever lace rock.
Pic's in my gallery. You tell me which ones are lace rocks.
As with any "base" rock, nuisance algaes are usually the first colonizers, so yes, it will turn brown, then possibly green. But this should really not be any different than adding calcareous base rock.
I have some in my 29. It grows coraline faster than my fiji. Also has other lfe growing on it. It is heavy and dense though. Id say its ok to use a little, but go with mostly LR.
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