How's your Tang doing?
Not sure why you broke up the tread - but it definitely looks like Black Ich. It's caused by a small flatworm (for more info look up Turbellarian: Paravortex). Best treatment is short 30-60 min dips in formalin. Try 0.125-0.170 ml formalin (which contains 37% formaldehyde)/L. This should be done in a separate tank/bucket. Keep watch over the fish so you can remove it back to the tank if it starts to freak out. Also, ensure you put an air-stone in the container as formalin uses up oxygen. If you don't you could asphyxiate the fish. Three treatments over 3-5 days should do it. Can't comment on "No-Sick-Fish" - what's in it?
The spike in ammonia/nitrite was definitely a contributing factor to the outbreak of disease and the loss of your other fish. Both ammonia and nitrite should be zero. I wouldn't bother with adding chemicals to clean up your water. For striping ammonia out, the best thing you can do is change your water or consider the use of Purigen (Seachem). Prime will remove some ammonia, mainly by complexing it (binding it up) but it still has to be taken out of the system. My experience has been that while these additives have the capacity to reduce ammonia, they can't get it down to a level that is comfortable (read suitable) for your fish - which is basically zero (or as close as you can get).
Hope this helps.
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