Questions - Need some input

Can two royal grammas co-exist in the same tank?

I've been absent for a while because I've been too busy with college and work, but I'm back now, hopefully for good. I've got a few upgrades coming soon and also some cool "side-tank projects" I want to share with Reef Addicts. But what really prompted me to log on tonight was this: I've been going to school in the mornings and working mostly the graveyard shift, because of this I don't really have much time to interact with my tank other than maintenance. This evening was the first time ...

My corals are not looking good... I tested the water and everything is ok except the nitrates are a little high, although I don't feel like this is the reason why. I've had them high before but it didn't affect anything. Recently I had an anenome die but I took it out right away, this was not even a week ago. I don't over feed and I just did a 20% water change. The tank is a 40 gallon with 10 gallon fuge. My soft corals were the first to show signs that something was wrong and now my long tentacle ...

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I just added a common firefish to my tank. What can I expect in terms of behavior and habits?
So far it's just been hanging out in front of a flow pump. I'm just glad it hasn't jumped out...
It's eating well and not fighting. Do they adapt well to reef tanks...?

I've had this coral for about 3 months and it was doing great. I fragged a piece off and it was doing good in my tank too. In the lastfew days I've noticed that it started to slump over and it's stopped opening up. This morning I found it like this. I tested my water and everything is fine; pH is within range, ammonia is 0, nitrite is 0, nitrate close to none, and phosphate is 0. The salinity is also within range though I've never really had problems with that. There is some discoloration happening ...