Fungus?

I was wondering if I should post this in plant identification, but I think this forum might be more appropriate.

I am growing a small Orchid ( Platystele stenostachya) on a branch, and the log has some interesting protuberances on it. I was intrigued by it when I bought the plant in April from Andy's Orchid in Ca. Originally I thought it was perhaps a Lichen, but so far have not not been able to match it up. Now yesterday I sliced one and took a closer look. The slices smell very mushroomy. Any ideas? Is this a Fungus of sorts?

Here are some pics -

and -

here are some juveniles

and the slices -

Btw mature growths measure about 1/2 of an inch. I am really curious what this is !

I had posted this "Orchid on a stick" in the Orchid Forum/ September 2007 thread
http://davesgarden.com/community/forums/fp.php?pid=3953003

thanks,

Ursula

Hmm, did I post this in the wrong forum? Would plant Id be better?
I was hoping somebody might point me in the right direction?

This is the right forum, I think that people are just stumped.

Thanks, Hyblaean! It is a strange one for sure!

:D if you find out what it is, let us know

It could be one in the large group of Xylaria...

http://images.google.be/images?q=xylaria&svnum=10&um=1&hl=nl&rls=GGIC,GGIC:2007-03,GGIC:nl&start=20&sa=N&ndsp=20

I bet that's it- Go Bonitin!!

Bonitin!! You rock!! That sure looks like it, I will dig around in there.
Thanks so much!!
Ursula

You're welcome!

Yes, it is a Xylaria, I believe, although immature. It is an Ascomycete, probably not a pathogen.

Thanks!! I am glad I posted this here!

Great photography!