Well, everyone, I listened to your advice and added 15 extra plants to my tank. After that I did a 30% water change, added a simple CO2 system (By Hagen), trimmed the dead leaves and added Excel to the tank. As an advice from a local petshop, I also added Tetra Safe Start to lower ammonia and speed up the cycle. Last, but not least I took out the log with algae and dosed it with Hydrogen peroxide ad then boiled it, cooled it and added back to the tank. Hopefully this will fix the issues I've been having.
In regards to the light, I checked and it's a 96W 12000K lighting system. There is also a second light (white and blue), also at 96W. Can you advise as to how much light I need? (38gal 20" high tank) How long should it be on for?