To add more clarification here, the chili has never really been happy for long periods of time in either tank. When we first placed it in the 15g tank it showed good polyp extension nightly for about the first month. Then things started to go wrong. The coral wouldn't extend his polyps at all for a month or more at a time followed by a week where he would extend again. This cycle repeats itself over and over again, one month angry, one week happy.
The 50g tank he is in now has been up and running for about 6months and is completely cycled. The rocks look clean because they are, we bought dry, pressure washed, bone white Marco rocks when we setup the tank. The flash in the picture makes the rock look whiter than it really is.
The chili coral is placed under a rock overhang in a moderate flow area.
What caught my attention recently was the look of the polyps. Usually they are out, as seen in the first picture, or not at all. Now it appears that the base of the polyps are extended but not the individual 'feeder tentacles'. My guess as to whats happening is that the tissue surrounding the polyps has receeded so much that the polyps are no longer able to fully retract inside. The coral is now 1/2 - 1/3 the size it was when we originally purchased it.
Any advice on how to make and keep a chili coral happy?