It's not necessarily the peat that is the problem, but the pellets are encased in a netting that can inhibit root growth in spite of what the manufacturers say. If you use them to start your plants, cut and carefully peel the netting off when you pot up or transplant to the garden. Don't use 'garden soil' as it will carry bugs and pathogens that can kill your seedlings. Straight peat can compact, dry out and crust up, or hold too much moisture...starting mix has peat with vermiculite and other stuff(perlite?)mixed in. It is also sterile. I use Jiffy starting mix in cell packs, then use potting mix when I pot up to 8oz cups after a few sets of true leaves. As for peppers, you can find a lot of info perusing the Hot Pepper forum(growing info applies to sweet peppers too). There will be as many different methods as there are posters, and no way is THE way. What works for one may not work for another. Don't forget to read the FAQs at the top of the forum page. Peppers seeds need warmth to germinate, about 85 degrees is ideal, but they will eventually sprout at temps a bit lower. Keep the medium moist, but not wet. Some varieties will take longer to germinate than others and I've found it's best to keep different varieties in their own cell packs or pots so you can take sprouted ones off of the heat without disturbing the others. Don't fertilize your seedlings until they have a couple of sets of true leaves, and then do so with a very weak solution. Also, you don't say where your location is, if you're starting your seeds indoors, what kind of light source you have(lights, bright window?)and that info would help with feedback. Hope this gives you a starting point. Here is a link that might be useful: hot pepper forum

For all you non pepper junkies out there remember... We're professionals, we have years of practice eating hot stuff, out mouths are callused and the other end has been flame proofed and even now we get surprised like with the seven pot and Naga types and the Trinidads. My advice is start slow, small bites and have some Yogurt, icecream, a can of whipped cream and a gallon of milk handy. And for you matcho types that think you can take it and go ahead an wolf down a whole really hot pod or two I highly recomend a large container of Tux pads for later on. Also recomended is some aproperate music for the occasion. Johnny Cash's Ring Of Fire will carry the mood.

Unfortunately, I don't have a way to take pictures (ancient cell phone, no camera). BUT I have noticed today that the plants that were darker in leaf colour have got a stiff spike of what I think must pass for its flowers growing up out of the very top of several of the plants -- I don't remember peppers ever doing that. I'm thinking they might not be peppers at all but weeds? I planted another set of 6 just hot peppers in a container and they have started sprouting (only 6 and only where I put the seeds :). Is it safe to say I can pull out those plants with the funky flower shoot and try again in their place some bells?

I would strongly reccomend pre sprouting your seeds before putting them in a growing medium. To pre sprout give your seeds a warm bath for about 30 minutes to soften them up, then place them in a damp paper towel in a zip locked bag and place in a warm spot..top of the fridge. I have a heat pad but you have to be careful with those because they are hot and will cook your seed. Try wrapping the bag in a towel to moderate the temperature on top of the pad. Check your seeds daily to see if they have sprouted and to expose them to oxygen, when you see the little white tip comming out of the seed you can now place it in soil at about 1/8 inch depth. Within a day or two it will come out. I always use this method because it gives me greater control over the seeds, especially because of the different germination times required for sprouting. Many chile peppers are very stubborn. I started six varities last week, two are out of the soil three have sprouted and one is still enjoying the warmth of the zip lock bag...it's a Naga Morich. As for soil any good soil mix will do Jiffy is as good as any.