Newbie: tank cycling question
I'm new to the hobby, but have been doing a lot of reading. I have been cycling my new 30 gallon tank since the beginning of the month. Started with live rock about two & half weeks ago. added the three blue damsels about a week ago. Two days later one of the damsel had been killed by the others. About three days ago, an other one was killed. Now I have one damsel, live rock and the beginning growth of brown algae. The remaining Blue damsel looks fine. I've been watching him closely and color is good, eating well, etc. Ammonia is at 0.2 Nitrite and Nitrate are both 0.
So my question is: Is the cycling process working? Do I need to get more Damsels (although, I afraid this one will kill them)? Should I be doing anything else besides waiting, watching and montoring?