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Yep, Coralena, I do believe that's what it is - a peanut worm. I did a web search on peanut worm and received quite a bit of info. Different class than bristle worms ... Sipunculan. Apparently there are some 300 species of the little buggers. Hence, the many different colors, striping, size...

Better image This image may be a bit better ....

Hello, My wife and I have had saltwater aquariums for 10 years or better. Currently we are running a 120 gal salt tank that has been in continuous operation for about 3 years. While doing a bit of maintenence, my wife found this creature in the crushed coral bottom. I've never seen one before...