Great spot! A gall firework, primed and ready to go off! Now you know what you're looking at when it gets REALLY strange.
Makita, I love your blog. Sounds like your kids are getting a great education.
Here's a more extensive explanation: http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Document-1036/EPP-7611web.pdf
You should link this to the Symbiotic Relationships Mission: http://www.projectnoah.org/missions/7987627
I think I found your answer:
http://teapotshappen.com/2009/09/29/cedar-apple-rust-galls-coincidence/
We recently studied galls ourselves and wrote a post about it here:
http://academiacelestia.blogspot.com/2012/02/galls-nature-study.html
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