By the way, the lifereef overflow, if installed correctly is very, very reliable. I built one of my own (on my 75 gallon reef that does have sump and a refugium) using the same design and have no fear of an overflow. It never loses siphon regardless of power condition on the return pump.
Undesirable algae grows when the tank has food available for it, so if you have too much nutrient content in the water column (too many fish, not enough live rock, not enough live sand, feeding too much) or the wrong spectrum of light you can get problems. I run carbon about once a month to clear organics out of the water column, which empircally seems to help, but it also looks nicer.
I would say that if the tank is completely cycled and you are still seeing major blooms you probably don't have enough live rock and / or sand to keep up with the bio-load of your tank. A good protein skimmer is assumed in all of these comments. By good I mean one that you are satifisfied is performing adequately. People argue about which is crap and which is best, but in the end the user has to decide if the device is functional and performing its task satisfactorally. Some are clearly better than others, but a lot of them do the job just fine.