OOOOOPPPPPS. This doesn't look like one of those, curled leaf problems to me. This looks kind of serious to me. Hopefully someone will have an indentification of the problem here but I would be considering repotting with fresh soil while I am waiting for a definitive answer. How do the plants look otherwise? Also, listing any soil amendments you may have added might help with an ID and solution for this problem. you didn't add something like bone meal, did you?
Bruce
Bruce.

This post was edited by esox07 on Mon, Mar 4, 13 at 22:15

It's probably just a slime mold (fungus)...scrape it off, discard the surface scraped off, and carry on...cut back on the watering and nutrient additions for a little while.

It's not one of those molds that causes respiratory issues.

Hay Bruce,I saw this wile I was reporting from the red solo cups to 2 gallon containers. Is that what you mean by potting in some fresh soil or get rid of all the old dirt on the rootball and then the fresh soil. As for the soil amendments I have used some root blast along with myco blast a wile back. Then gave it a shot of floral nova. The floral nova was the last thing I used,but when I did I mixed up the wrong dose so I flushed them Saturday and Sunday until the runoff water got clear.
I just potted them in some sunshine #4 mix and watered a little. Here is the line to that stuff.
The plans look great otherwise.
Come to think about it the one plant the third set of real leaves are a little curled under at the tips.
All in all the all look healthy and No bonemeal.

Here is a link that might be useful: http://www.supremegrowers.com/news/20/soil-blast-beneficials-convert-organic-soil-matter-into-fertilizer.html

This post was edited by beginnerpepper on Mon, Mar 4, 13 at 22:46

Nc-crn,thanks for the info. That's what I will do. Thanks!!!
Barry

Looks like a fungus to me.
Some Mushroom Mycelia looks like that.
If it's mushroom stuff it won't mess with your plants - breaks down the soil.
But if it fruits,the mushrooms can mess with your plants by physically screwing up the plant as they grow.
A large mushroom at the base of a starter plant CAN uproot it or knock it over.

To find out if it is mushroom Mycelia you can dry out the soil then water it heavily.
When you water you'll get pinheads from small mushrooms growing.
Drying out the soil makes the Mycelia go into survival mode.When watered it puts out fruit/mushrooms so it can spread spores around.
If mushrooms/Mycilia grows in my pots and mushrooms don't mess with my plant I let it be.
It just helps the plant by breaking down my potting soil in general.

Thanks smoke!! I guess it's a waiting game now. Maybe that came from that stuff I used that was in the link I posted earlier . I never used it and don't know anyone who has. Fingers crossed!!!

I am pretty sure everything will be fine. It looks like it was something in the soil and probably wouldn't affect the plant itself. But best to reppot them in fresh soil and use the amendments sparingly and please don't over-water.
Good luck,
Bruce

Thanks Bruce! We will keep an eye on them and hope for the best.
Barry