Does this resemble the (broken link removed) ?
The adult scale insect is about 0.1 inch in diameter. It has a grey cover that hides the insects. Scale insects have thread-like mouthparts that are inserted into the bark. They feed on the sap. There are four generations a year in South Carolina.
A single female scale can produce about 400 young over a six-week period. The young are called crawlers and move to a new area. They then settle down, insert their mouthparts, begin to feed and secrete the covering over their body. When populations are high, the crawlers may settle on the fruit. This produces a red measles-like spot on the ripe fruit.
Heavy scale infestations can kill individual branches. The best control for scale insects is a good application of dormant oil in the spring. This should be applied before the leaf buds begin to open. During the season, insecticide sprays will kill the crawlers. Insecticide sprays will not kill the scales once the cover is secreted.
Info found at (broken link removed)
You have aphids, according to one of our electricians. He owns a small (about 2000 trees) orchard on the side. He said that you can use sevin on them, or if you're trying to stay more organic, a solution of soap and bleach.
Thanks for the feedback folks. I should have checked to see if they had an exoskeleton, but from the picture it appears they do.
The tree looks OK, but when I saw these I looked around the net and didn't see anything that really looks like these. I cut the leaf off and put it in the trash. I haven't seen any others. The little 'pods' they were building were pretty neat looking.
I know that often insects and arachnids (spiders, mostly) will lay their eggs in or on something that the larvae will feed on when they hatch. There's a species of wasp that uses its venom to put a certain species of tarantula in a state of suspended animation, and then lays its eggs in the body of the spider. When the larvae hatch, they eat the tarantula, mature and then go about their business as wasps. In the same vein some insects will lay eggs on the leaves of trees and shrubs and when the larvae hatch they eat the leaves, but aren't necessarily leaf-eaters as adults. In some cases of extensive infestation the larvae can kill a tree, or prevent it from bearing fruit. In most cases they're harmless, however, and in some cases even beneficial, because the adults will feed on harmful insects.