BillA:
Not quite sure what you want me to do.... find a large res. and attach it directly to the pump intake?
Also I am sure that is it not alge. It has a greenish blue color to it and it is a very fine powder. Yes, the water that I was using is not necessarily the best (VONS "purified" water; they claim that it was deionized), I thought it was the knock-off equivalent to distilled water.
BigBen:
I did not flush out the radiator before I installed it; my mistake

But I didnt think that I needed to clean it out before using it. Oh well. I just went back to using WW.
I thought that brass and copper doesnt react the same way AL and CU do in a closed loop. Not to say that I didnt expect a very small bit of corosion but to see this powder film over all my tubes and building up in all the corners of my blocks?!
What is this pump fix? I have heard about it before but figured it was only for the MAG pumps. I may have to try it.
One question I do have for you BillA. If I have a 1/2" line comming into the pump and only have a 3/8" exhaust, then how could I still be starving the pump for water when it should NOT be able to get rid of it that fast? Not challenging you, just curiosity.
BTW thanks for all your input on the matter.