As for lighting, is it two 38 watt bulbs or combined wattage? Anyway, at 11 gallons and 38 watts total your at 3.45 watts per gallon, which is good. If its more than 38 watts, you have more than enough. The other thing to is feed the Anemone, its eats also. Also, it needs clean water, so skimmer is better suited for this tank if thats being kept. Now, as for algae bloom, your main enemy is going to be Phosphates, which can come from food you feed (make sure if you feed flake or pellets, its marine food, which less likely have phosphates as like freshwater food), and Nitrates. Good efficient skimmers help to reduce or eliminate both by removing the wastes from the water before nitrifying bacteria can consume it and by adding a little Kalkwasser to keep PH and calcium up, it will bond to phosphates and remove it. But, if you change water out regularly and not overstock/feed tank, this will not be a problem. With damsels, they are hardy, and will be able to tolerate any mistakes or cycles your tank go through. Perculas Clowns are another alternative since you want anemone. As for live sand, are you purchasing it pre-packed in sealed bags, or actual real ocean live sand. It pre-packed sand has the bacteria cultures, but southdown sand or detrivore kits will make a much more diverse live sand. I've had good results with GARF's grunge. I used about 4 pounds sifted into my sand bed, added alot of microfauna to the sand. So far, i've seen flat worms, amphipods, copepods, spagetti worms and even snails growing from a 10 gallon "q" tank I seeded with only two pounds. You will get these in your live rock also, so thats another alternative. Also, test your RO & distilled water. I added a DI canister to my RO only unit. Small tanks can bloom if excess nutrients are added from make-up water or replacement water. Plas DI units last loger when feed RO water, since 95-98 percent of the impurities are removed already. You can ck it with a TDS meter. My RO produces 3 PPM's, and after the DI, 0 PPM (pure). I would at least add one fish with the clean-up crew. This way what ever the fish doesn't eat, will be picked up by clean-up crew. Also, have the live rock in when they go in also. They eat off the live rock too. IMO, two clowns, maybe a neon goby, clean up crew, live rock, 2-3 inch live sand, BakPak II Reef skimmer, and if you can keep the water quality up and clean, then consider the Anemone. I would also add a little Macro Algae, but a little, because if you place a large amount and it dies back due to lack of nutrients or too drastic of a change in water quality, it will release all the absorbed nutrients into the water froo nuisance algae to grow off of! Also, run the tank fist and see how hot it gets, try to make sure it goes no higher than 80 deg F. Later, *crazysmiley*