I have a 2-3inch oscar and was wondering if i could quaritine it in a 10 gallon tank for a week or two while i get its large tank set up. added a piece of wood and even after taking the right steps to disinfect it worm like things came from it and made the tank cloudy.

Is the tank cycled. If it isnt then NO. Also you shouldnt put an oscar in the bigger tank until its cycled either.

Check this page out for how to cycle

www.oscarfishlover.com/how-to-cycle-a-tank

the large tank was cycled until i added the piece of wood to it. then it got all couldy and the worm things came out. im doing a 70% water change right now.

What type of wood was it and where did you get it?

the 'worm' thing is probably fungus which is pretty normal for driftwood soon after adding it to a tank. Sometimes it can develop white nodules/patches and a 'slime' like surface which will dissipate.

When you say cloudy do you mean like a brownish stained color? Driftwood can leech tannis which can 'discolor' water but it shouldn't ever make the water 'cloudy' at all unless it was dirty and hadn't been washed or soaked at all beforehand.

Adding driftwood to a tank wont destroy the bacteria in the filter.

Take some of the media out of the filter in the large tank and put it in the filter on the small tank. Bingo instant cycle, but test every 2 or 3 days to keep an eye on the levels just to make sure. Then you can quarantine the new fella