Sphag 'n' Bag Treatment

[Annika]

I've been treating a phal for over a month using a damp paper towel and ziplock bag and have had continuing problems with mold/fungus. Now one of its two leaves is turning yellow and I think it's only a matter of time before it falls off. What can I do at this stage? The remaining roots (1 or 2 one-inch long) look pretty much the same as at the beginning of the process. Should I give it another root hormone treatment? I really don't want to give up! Thanks, everybody, for weighing in!