The small discs seem like flat worms to me..lol..
I was going to say that, but...LOL

I want to feed it other stuff but in order to get it to eat something more nutritious I would have to starve it by only feeding the better stuff. Would this be recommended for a sick fish?
Probably not. He's already in a delicate enough situation as it is. I guess you can work on his diet after he is on his way to recovery (ASAP), but for now the Selcon (vitamin) soaked food is going to be a step in the right direction.

Water is at 1.020 (I have to add RO water to bring it down).
So you are lowering the salinity in the tank by adding RO every time you do a water change with a higher salinity water? Could you clarify how you are doing this for me? If you are doing water changes with say 1.025 salinity water from you main tank (as an example), and then lowering the salinity via dumping in fresh RO/DI directly into the hospital tank to compensate for the salinity levels, this could be causing undue stress on the clown as well...OR do you mix the water from your main tank with RO to lower the salinity (to match the hospital tank) and *then* do the water change? I don't think using water from the main tank is such a good idea though. I'd go with the fresh stuff personally. Less "germs" to worry about in a fish who's defenses are down in the first place. Sorry I'm asking so many questions, but I want your little clown to get better too!

Also, as Diego said - it DOES take some time to get rid of that durn brook. It took almost 3 months to cure mine...I contribute that longevity partially due to the fact that I started with only the formalin, and not the lowered salinity combo.

Wendy