Lutzd79, If it were my own lawn, I wouldn't worry too much at this point. If I recall, you're a bit farther north than me. My own Midnight II backyard only really woke up in the last 10 days. Give it more time. It looks like you have the beginnings of some growth. You have a new lawn, time should improve it. Just be patient. As for powdery mildew, I get some of that every fall in one part of my yard that is more shaded in late autumn. I haven't done a thing to rectify the problem It just goes away when conditions improve. I, of course, could be wrong. But powdery mildew on these grasses seem to be more cosmetic than anything else. Just make sure you do the proper cultural practices (cut high, water deeply and infrequently and fertilize properly) and you will probably be ok. These KBGs seem to be much more disease resistant than the old Turf-type Tall fescue and Rye mix that I used to have in my yard.

If you want primarily a KBG yard, you'll need to sprout the seed already there or they will invade when you do the KBG planting in the fall. If you don't want any of it, water it up. And, then don't water. Most places would kill seedlings this time of year without extra irrigation (though mother nature can surprise). Next choice is then to decide if you want to till your lawn to prepare it. Some do, some don't. Pros and cons either way. If it was me and I had fill dirt added I'd probably till it the first of August. Then you get to the chem/organic debate. I differ with some above. I don't think it takes three years to have a starter yard ready with organics. Again, just my own personal preference would be to put down a heavy layer of compost and till it in. Level up the yard again. Then, just before seeding (Aug 15 sounds about right in your area, but check that out, all gardening is local) add 40 lbs of alfalfa pellets. It has chemicals in it that stimulate plant growth. About October I'd follow that up with another 40 lbs per 1000 sq ft of soybean meal. Its higher in Nitrogen than some organic fertilizers. And, again just me, I'd then add 1lb of nitrogen from urea after your first hard freeze. Next spring start an organic fertilizing program of your choice. The soil will continue to show improvement under an organic program for three years when it hits it max potential (all other things being equal). But, imho, you don't have to wait for it to get to its full potential to start a yard using organics. And, imho, the approach above, while not as good as it will get later, will be better than using chem fertilizers from the get-go. Of course, you know how opinions are, everbody has one. ;)

Outside of the professional level fungicides, which are expensive, and not easy to get, you can try Immunox, which comes in a black bottle that you attach to your hose and spray down the whole lawn paying attention to the fungal spots. Does it work? I had some brown patch appear in the beginning of the month, so I immediately treated the lawn. It seemed to stop the progression of the disease and the rest of the lawn is unaffected. From your pics it looks like it is too late for the patches of brown grass, but at the least it will probably stop any more outbreaks.

Billhill, Yup. I agree. I think I've gotten better results this time too, just because I have a better idea about what to do. (I owe bestlawn, bill and AJ for that) But you are surely right about the anxiety level. That first year with the front yard, I was very anxious about whether it would come in or not.