Well the first problem is most likely the mediums you are using. Peat pellets are notorious for germination problems - difficult to get wet, compacted layers, and once wet they stay too wet causing the seeds to rot or the rootlets to die. Garden soil should never be used to germinate seeds indoors. Not only is is too compact and drains poorly but it contains all sorts of bacteria fungi that given indoor conditions quickly lead to molding seeds and seedling damp-off (that is likely what is killing your 2" seedlings). For those reasons only a light soil-less seed starting mix is recommended for germination. Once the young seedlings develop a couple sets of true leaves they can be transplanted into any of the good commercial growing mixes. So why not begin with the FAQ here called "How to Get Started" (linked below). Also be sure to check out the FAQs on lights, needed air circulation, and the one on damp off. Peppers specifically take longer than many other things to germinate and they require warmer than normal soil temps (75-80 degrees) for best results. They also will not tolerate excessive watering. All the great FAQs here should answer your questions in detail but if not, let us know. Dave Here is a link that might be useful: Growing from Seed FAQs

I received one of these Bolivian Rainbows a couple of months ago. I transplanted it into a ceramic pot using standard potting soil. It has received water from my sprinkler system for about 30 minutes 2 times a week. We've been in drought for a few months now so thats all the water its received. It's been in full sun as well for most of the day. Ever since I repotted it it's been in decline. The leaves shrivel & brown at the edges then the peppers turned almost all red and started to shrivel on the vine. Now the browning has extended to the stalks and I just can't seem to stop it. I've noticed one or two tiny white insects (maybe aphids?) in the soil at the roots but that's all. No stickiness or anything on the leaves or stalks, just shriveling & browning. I've also checked inside the fruit for pests and found nothing. Anyone know what might be causing this? Please help!

Phew.. luckily for me A) I'm not growing yellow bird chiles nor B) do I live in a warm climate where I'd worry about having something outside in a pot for 6 months. Thanks for the bolivan rainbow responses to everyone else.

Key to Pepper Species This key was created and donated by Dr. Paul Smith, Professor Emeritus, Department of Vegetable Crops, U.C. Davis. A. Corolla solid color, white to waxy yellow green, without spots or other contrasting colors B. Anthers pale blue to purple * C. Flowers solitary (sometimes 2 at first flowering node), white **, calyx distinctly ridged, small teeth (less than 1 mm) at margin C. annuum CC. Flowers commonly 2-5 per node, corolla white to pale waxy green D. Distinct annular constriction at the base of calyx, teeth minute, corolla white, pedicels variously curved. C. chinense DD. Calyx not constricted, teeth lacking, pedicels slender, stiffly erect at bud stage, corolla pale waxy green. C. frutescens BB. Anthers without anthocyanin, corolla white C. Plants glabrous or nearly so, calyx tube heavily ridged, teeth as long as calyx tube filament bases with distinct appendages or "wings" C. chacoense CC. Plants pubescent, calyx without teeth, filament bases without appendages C. galapagoense AA. Corolla base with distinct single spot or continuous basal zone, anthers yellow (except C. pubescens). B. Basal zone continuous C. Corolla purple with white basal zone, plant pubescent, leaves rugose, seeds black. C. pubescens CC. Corolla yellow, basal zone chocolate, plant glabrous, leaves smooth, up to 15 flowers per node, seeds tan Ac. 393 (S.E. Peru) BB. Basal spots distinct, pale green or yellow C. Corolla white to pale lavender to purple, spots pale green, seeds tan D. Corolla lavender to purple,*** calyx teeth 1.2-1.8 mm. C. eximium DD. Corolla dirty white, plant pubescent C. eximium var. tomentosum CC. Corolla white or with purplish tint, spots pale green. Seeds black D. Corolla white, calyx teeth indistinct C. schiottianum DD. Corolla white or with lavender tint, free portion of petals distinctly in-rolled, seeds black C. buforum AAA. Corolla lobes with 2 distinct spots at the base, seeds tan to brown B. Corolla rotate C. Petal segments distinct D. Corolla white, spots pale green C. baccatum var. baccatum DD. Corolla white, spots yellow C. baccatum var. pendulum DDD. Outer margin to ½ of corolla lavender, leaves lightly rugose, moderately pubescent C. praetermissum CC. Petal segments indistinct, margin ruffled, points at petal intersection Ac. 1230 (Brazil) BB. Corolla urn shaped, cream to violet C. Corolla urn shaped, cream to violet C. tovarii CC. Corolla campanulate, lavender C. cardenasii * A C. annuum with yellow anthers has been seen. ** C. annuum forms with anthocyanin in the leaves and stems also have lavender to purple flowers. *** Flower color in wild C. eximium may range from typical lavender through various intergrades to purple. This is clearly the influence of natural hybridization with C. pubescens.