Hello bobboman. Welcome to TR.
White stuff, hmm....I wouldn't worry about that right now. Let's take a few steps back.
You have a decent sized nano, and about 1 inch of
Aragonite(?) sand, 20 lbs of
live rock. A bit light on the
LR, but otherwise OK.
I am assuming that your
LR and sand have not been fully pre-cured before putting it into your tank. Most
LR you buy from an
LFS tends to be uncured or semi-cured. Most "live sand" that you buy in a bag should also be considered semi-cured. Even dry
aragonite may have organics in it, which may decompose in your tank - so dry
aragonite should also be considered semi-cured.
Since your tank has only been up for 5 days, there are going to be some major (Ammonia,
Nitrite,
Nitrate) chemical swings in your tank that are going to be hazardous and stressful, even for hardy fish. If you do a bit of research online and in (newer) books, you'll discover that stocking a tank with fish from the start is not necessary, and is even considered by many to be cruel.
I am wondering if you can return the Damsels to the
LFS and just let the tank establish its cycle for 3-4 weeks
before slowly adding a cleanup crew (snails and crabs; later, and just as gradually - corals/fish). Your
Ammonia and
Nitrate should be tested to be zero, and your
nitrates on the decline before adding a cleanup crew to help with the algae and the eventual fish
detritus.
You've come to the right place, listen to Rob's Talkingreef Podcasts on Tank cycling to get a better idea on how the tank cycle works and what to expect.
Good luck!