Sulfur is an antifungal agent, but it is used all the time in organic culture. I stay away from it in the concentrated form, which means I might use sulfured molasses but not pure sulfur.
Usually just using organic methods and materials will resolve your pH problems. Healthy beneficial microbes generally exude buffered acids that move the pH to 7.00000000 and keep it there. Maybe I'm exaggerating a little but they do normalize the pH for the most part. Just be sure you have the microbes to begin with (dusting of compost) and feed with organic fertilizer.
As Tim stated, properly appling Sulphur is okay. Many times I have used elemental Sulphur to correct pH problems without adding additional sugars or carbohydrates.
Soil profile conditions typically dicatate exchange site values which in turn have a direct impact upon microbial population and activity.