CritterHill said:
This lilac _was_ in trouble last year. It had what in retrospect looks like it may have been powdery mildew last summer (now that I have done GIS for that as well).
Nah, lilacs get powdery mildew really commonly (this was just on the leaves, right, not the branches?) and aside from being ugly it is pretty totally harmless.
Definitely no bugs in the mess. If I use my 10x jewelers loop, it looks like tiny, tiny, tiny flower petals or petal shaped tubes almost...
When I roll it between my fingers, the petal things stay pretty much intact.
That sounds like the non-bracket-forming bracket-type fungus, to me. The fruiting bodies (the 'mushroom' part of the fungus) is composed of a gajillion tiny parallel tubes. I am not saying that's definitely what it is, but it sure is consistant with fungus.
If that IS what it is, the mycelia (the 'root' part of the fungus, as it were) are all throughout the wood of the branch, and the white part is just the 'flower' part as it were, so there is no particularly great point in trying to treat the white part per se. Unfortunatley I do not think there is anything but the axe that can be done for a systemic fungal infection. It generally only happens to shrubs/trees that are hurtin' from some other cause already, tho.
What Rosalind says rings a bell somewhere in the back of my head, too, though. How long has this stuff been there like that on the lilacs? Is it possible that the tubelike things you are seeing are elongated, as-yet-unhatched insect eggs?
If it were me, I would continue to try to pin down a definite identification. If it turns out to be what it sounds like to me, though, you may have to either a) trash the entire plant including digging up the roots, or b) if you wanna gamble, you could cut it back virtually to the ground and see if 'clean' shoots come back.
Good luck,
Pat