They do not rust (at least not nearly as much, and that's just the heat sink part, the bulbs are protected from it) if you have them high enough, and since they usually come with 60 degree optics, that shouldn't be a problem on a 7g. They pump out a ton of PAR. The coral will most definitely grow with a 20k PAR 38. I know because I have some on my 90g. It depends on what spectrum you really enjoy. The 12k for me is too white. The 20k is a great look. It's definitely not too blue and the shimmer is fantastic. How tall is your 7g? Depending on the dimensions, I would probably have it a good 8 inches off the top of the water..possibly higher. I have an acro that is doing very well now but when I first changed them from my 4 bulb T5 fixture it bleached a decent amount... It is about 5 inches under the water and my bulbs are about 5 inches from the surface. I will most likely be raising them soon because it is a bit too spotlight-like.