I have the same critters in my tank.
Are they about the size of ants, look like they have black and white vertical stripes, very fast, and seem to be building tubes out of sand that they live in?
The guy at the LFS called them cocopods and said they are a good thing and an indicater of good water quality. I get a kick out of watching them select a grain of sand and rush back to their tube to fasten it in place.
Is the cyano on the colony or is the colony overgrowing a coral skeleton that is on the rock? Every coral skeleton that I have that looks like that on my live rock has had a growth of cyano until I scrubbed it off with a toothbrush. After coralline covered the skeleton the cyano didn't grow there again.
If it is on the colony: You might want to use a Q-tip to carefully wipe the cyano off of that colony, and I agree with the need for increased flow.