[Lost]

Hmm, lets describe my setup...(if you want to go straight to problem scroll down to bottom)I would show pics but i forget how to convert pics for the web using photoshop. ANyway; its a very cool YY cube painted silver outside and red inside; I have my pump and rad(6*6 w/ push/pull 120s) on HD side. It leads out the back where it goes into a copper pipe setup where it spilts off into the mobo side so each block has its own supply.
Currently I have the P4 w/ a DD maze, an 8500 w/ DD block and one pipe capped for later expansion. The heated water leads into a 4*4 pvc elec box res w/ a plexiwindow. The res is mounted as high as possible on the mobo side in the front of the case. I then have an outlet connected to the bottom of the res which leads to the pump on HD side; thus completing the cycle.


Heres my fungus problem. Oh yeah very importent. Im using Distelled water from SUper G w/ bout 3oz of waterwetter. Im guessing about a liter of water in the system. I was checking water level when I noticed something weird around the gasket of Res.(gasket wasnt seated properly here either) it was white kinda crystalized; it smelt like fungus, looked like fungus and tasted like fungus :-(
Now to solve problem. Was this casued by the gasket not being seated problerly?(btw there is no fungus in res) Is the distelled water I bought just jacked up facuet water? Will somethign like a little aligcide(pool stuff) prevent fungus? Or do I ask too many questions?

Oh yeah I dont run system 24/7.

Thanks for the help