From what I have been able to find out from articles in Reef Keeping mag, and on other forums it is a common hitch hiker on live rock from different places.
Samala (RC name) did a good article on macroalgaes awhile back, and lobophora is indeed what I have. From talking to people who have had it and who know way more than I do (which by the way is pretty much everyone), the only fish that will munch it almost always is a Naso Tang.
So I will be looking for a small naso tang I can buy/borrow to see if he will munch the algae. From what reeferhead told me though Jack is lobophora is actually an indicator of good water quality, not sewage!
In either case I want this stuff gone, or under control.