LOL Eek, yes I'm sure it's not a freshwater fish!
We have finally ID'ed it for those of you who are curious!
Plesiops corallicola
If you have a fast connection I also have a small video clip (1.3MB clip) of it on my website. (I know I messed up with page formating.)
http://www.fishtanksandponds.net/mov...cola_movie.htm
It's commonly found in Indo-Pacific: Madagascar to the Line Islands; north to southern Japan, south to the southern Great Barrier Reef and Tonga. Throughout Micronesia.