Ok, well I currently have a small brood of Jacobfriebergi Peacocks, I rescued them from my old work and have housed them in a 2ft tank and am about ready to sell them off now they're a decent size. Only trouble is, the one largest male who is very brightly coloured for a fish of his size, seems to have given one of the females some babies to look after. I didn't realise they could breed at this size (2 inches maybe); and I'm positive she is holding not just eggs, but fry in her mouth.

I really have no other space or suitable tanks to move her out... Should I just leave her in there? Or will that cause a problem? Thanks guys.

I am in the process of looking for a better home for these guys, I just don't want any violence between now and then!

If you don't want to save many babies just leave her in. Chances are she'll do just fine, however if you do see anyone picking on her alot you may need to move her. Most fry released in the main tank will get eaten by the adults, though if you have a lot of small hiding spaces you many have a few survivors. If you don't want to mess with fry at all, another option would be to strip the eggs from her now which would guarantee no surviviors.

Here're a couple of articles on stripping fry.
http://www.cichlid-forum.com/articles/stripping_fry.php
http://www.cichlid-forum.com/articles/stripping.php