Well Corrine, it actually is compost later on. In 3rd world countries where there's no access to peat moss or vermiculite, they teach this method using only 100% compost. Even if you use the prescribed "Mel's mix", the only thing you end up adding in the future is nothing but compost. After 15 years of my original purchase of Mel's mix(expensive), my garden is now 100% compost. The peat is gone and so it the vermiculite. And perlite is a waste of your money. Folks use perlite instead of vermiculite to save money. Vermiculite is used in this system not only to add fluff, but more importantly to hold moisture. Perlite holds no water. If you doubt that, just look at anything that's got perlite in the mix. It's the stuff that floats to the top. If it's floating, it's not holding...ie, water. If you're trying to save a few bucks just go with 3 bags of 3 cubic feet of commercially available compost. That's enough for a 4X4' filled with 6" of soil and it will only cost you $30. I've got my favorite, but there may be others out there equally as good. But not all compost is created equally.

Mushrooms are actually a boon as the "root" system helps with the nutrient content in the area they grow. Saying that though they like really damp areas wich may pose a problem to the other plants in the garden. Are you overwatering? Are you getting enough sun? If you pick them they will just grow back. As long as the conditions are good for the plants you want I dont see a problem, others may have better knowledge though.

Of no concern and quite common in spring, especially if rainy or the soil is kept overly wet. It is a normal result of the decomposition of the organic matter in the soil and a good indication of decomp activity. The source of that organic matter/compost makes no difference as all quality compost contains the beneficial fungus spores. Dave

Agree it is normal and common - especially in really wet soil and with all the wood chips in your mix. All the wood chips may end up being more of a problem than the toadstools could be because the leaves on your plants look a bit yellow and anemic. That indicates insufficient nutrients are available to them. Wood chips can use up the nitrogen in their decomposing process so you may want to consider feeding your plants. Dave