How long ago did you start them? Have you fertilized at all (weak solution)? Are you bringing them in at night? I believe peppers are in the nightshade family (same one as tomatoes and eggplants) and they will not be happy with the cool nights we are having.

I think I've got it figured out. I can't EXACTLY remember when I started them, sometime in early March, but the tallest is around 6-7 inches tall (if I estimate from across the room).

We live on a lake and sometimes we get these winds that whip up from no where, and I think I wasn't watching them closely enough and they got a little stressed. I've had them inside for almost a week now and they've perked up a bit. So I think I just have to moniter them a little more.

And I have used a tiny bit of fertilizer and they are not spending nights outside.

I've decided to use this as my experimental group this summer.

Seedlings grown indoors need an adjustment period to full sun. Start them off outside in a semi-shaded area for the first week.

Full sun right away will burn the little plants resulting in the white leaves you mentioned.

It's similar to us going to the beach for a full day of hot sun after being indoors/covered up all winter. The only difference is I would turn bright red. :)