More on this fireworm: Don't touch the fire worm's bristles. I'd suggest wearing gloves the next time you handle any rock - protection just in case you brush any bristles. If you do get bristles stuck in you, use duct tape to help to grab the bristles to pull them out of your skin.
There are two very common fireworms found in our tanks. One is the Hermodice carunculata and the other is the Eurythoe complanata. You don't want the Hermodice carunculata in your tank. It eats corals and gorgonians. If you haven't had any issues so far with your corals. Your worm is likely not the Hermodice species.
Although it is really hard to tell what you have w/o seeing the head, I believe you most likely have the Eurythoe complanata fireworm, a worm you don't have to worry about. This species has no jaws, papillae, or teeth. I have a couple of these in my tank also. But, if you want to double check: based on this article -
http://www.reefkeeping.com/issues/2003-04/rs/ The easiest way to tell the Hermodice from the Eurythoe is the caruncle. See figures: 1 and 3. This is what you have to look for on the front of the worm:
http://www.ronshimek.com/images/animals/annelida/polychaeta/Hermodice_carunculata_r.jpg In figure 1: Eurythoe, the caruncle is smooth. In figure 3: Hermodice caruncle has fringe-like tentacles.
For more info, here are a couple of articles written by folks who know their worms:
http://www.advancedaquarist.com/2003/5/short
http://reefkeeping.com/issues/2003-04/rs/index.php
http://www.ronshimek.com/annelids.html