Cheers guys.
I thought I'd try the flooding after reading that this species is almost semi-aquatic and get's submerged periodically in it's natural habitat.
I'm thinking the fungus was already there when I got the plant (albeit tiny) or has appeared due to the plant being weak after recent potting.... my U. sandersonii is right next to it, kept very wet (sometimes with a little, brief surface water) and has so far had no problems with fungus, growing rather well.
The U. praelonga is growing new, healthy stolons, which is a good sign.
I'll just keep picking off the fungus and any dead leaves, increase air circulation and hope for the best!