You know, I'm no expert on fish diseases, so I would just have to guess, but it looks like some sort of tumor or cancer. It's called lymphocytosis in fish, and it's not very common. There is no cure or treatment for lymphocytosis, but the tumor can go away on its own if you keep high water quality and the fish is eating well and acting healthy. It's caused by a virus, so the fish will always have the virus, and the growths can come and go (they always have the disease, it can just be dormant for long periods of time). If you keep conditions good and stress low, the fish can sometimes just keep it at bay if their immune system is strong enough.
That would just be my guess from the picture. You may want to send the picture to the guys at Wet Web Media -- they truly are experts at diagnosing fish disease.