Oh, I'm really sorry you've lost your fish. That really stinks.

If the white dots looked like salt it would be ich. Were they actually bleeding or were they red streaks?
I don't think you need to start completely over. Raise the temp to 84F like dozey said. That'll kill the ich spores.
Are there any fish left? If not, leave the temp elevated and increase aeration until the cycle is finished. Here's a link on how to cycle using ammonia:
Fishless cycling with ammonia
Oh, I would sterilize the net.
Good luck.