Started From Seed But What's Wrong With My 'Maters? Please Help!

[MrC]

Hello all. I hope you can help tell me what I did wrong! This is my first time starting tomatoes and I was extremely excited. Unfortunately now I'm very upset! As you can see from the link below what once appeared to be a nice batch of healthy heirloom tomatoes has something terribly wrong with them:

http://picasaweb.google.com/john.all...eat=directlink

After reading around and looking at pictures online of tomato diseases I suspect some sort of bacterial infection - but I can't figure out how that could have happened? I couldn't have over-watered - I waited until the peat pots were nearly crusty and bone dry.

I did notice the growth of some mold on some of the peat pot tops. I'm not sure I would use these again although several sites said they were the most fool proof way for a newbie like me to start good seedlings!

Any idea where I went wrong? Are the seedlings salvageable or should I throw all affected plants away before they destroy my (for now) healthy looking pepper plants on the top shelf?

Any advice is *so* appreciated! Thank you.