What they said^. The ugly phase kinda sucks, but give it a few months and things will balance out. I started my tank in November and it took a few months to balance out but it's all good now.
Yup Diatoms, it's actually a good thing because it means that the initial cycle is close to being done. Test your water and if everything checks out then you should be ready for hermit crabs and snails (which will hasten the disappearance of the diatom bloom).