Here's a pic. It's called a walking coral but so far it just moves around in a small area. There is a Sipunculid worm living inside that keeps the coral from being covered in substrate.
These guys are relatively new to the hobby. I think first imports on the was about 3 years ago. The only thing I've head is that the worm has died on people but the coral is pretty hardy.
Yep looks like a small Rhizo. Only about an inch long. I've read that while they are usually a single polyp, there are some with two polyps, or even a small cluster of polyps.