Ed ....... seeing as you are from NY, I'm surprised that you wouldn't be aware about lead being found in tap water. NYC has been fighting high lead levels for years.
http://www.nytimes.com/2010/11/05/nyregion/05lead.html
http://www.nyc.gov/html/dep/html/drinking_water/lead_index.shtml
Many older homes in North America have lead supply lines to the house, and/or lead solder used in many (pre-1987) homes. And many natural bodies of water will contain elements such as iron, lead, copper, aluminum, arsenic, etc. As long as the numbers are in the low ppm, or for some elements the low ppb, which is usually the case, these elements are not going to cause any issues with the vast majority of tropical fish.
My tap water originates in the headwaters of the Rocky Mountains, and contains all of the elements listed above. Never once have I had any issues with HITH, or any other type of autoimmune disease. Best course of action is to run your taps for several minutes before filling your tank, same as they advise with drinking water. Flush the lines to remove or at least greatly reduce any potential build up of metals etc in your water line. If one has a problem with an older hot water tank, that can be resolved by replacing the hot water tank. At lower levels some of these elements can also be removed by using a water conditioner such as Prime. According to Dr. Greg Morin, the President/CEO of Seachem, Prime will precipitate many of these metals, such as lead, zinc, mercury, copper etc.
Snake_Eyes .......... not sure what else can be added here, your fish appears to have an advanced case of HITH & may or may not come around. Sounds to me like you are doing all that you can. Good luck.