Nitrate source? I'm stuck

I would do some macro algae and get a skimmer to help remove some of those organics staying in the tank. the eshopps is a good skimmer, but you should really get one for the 40 gallon since you will be moving up that route. I believe the psk is rated for 75 gallons so you're good there. I have one of those skimmers (in sump though) and I personally love it!
 
Thanks for all the help and advice people are giving.

I had my lfs test my water and my tests are correct.

My thoughts are...
1) wait it out and continue to do WC to see if things stabilize. The die off of hermits caused the high nitrates and the will return to 0. How long do you think this would take?
2) if things don't stabilize, mod a aqua clear to grow chaeto to help export nitrates.
3) add another 4-5lbs of dry rock
4) do all of the above

Any ideas of where I should go with this issue?

If you mod an ac70 I would set it to its lowest setting (Move the intake tube to the right) remove the lid and put a 100 (60 minimum) watt equivalent 5000K to 6500K CFL bulb with a reflector above it. Without intense lighting the chaeto will not grow and take up the nutrients.
 
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