Starbuck, Listen to Orchidoholic. They need high humidity for a while. Physan 20 is good if you can get it, but any product (fert, fungicide, etc.) should be mixed in a dilute form to avoid hurting the little baby plants.
Soonix,
Sometimes, there can be some leaf drop in vitro that doesn't hurt too much. If there is only a root system left, and no 'shoot' I fear it may be lost. Don't give up on it though, it may surprise you.
Also,
sometimes, abnormal proliferation of roots, shoots, or protocorms can occur in flasks, especially with certain species and/or media.
Sometimes root proliferation can look "white and fuzzy." Just my
.