I'm hoping/assuming you're in a warm climate zone.

What size pots are you using? Depending on how big will impact root structure a/ plant growth which in turn helps w/ a Y/N decidion on garden.
20oz cup vs. a 6oz cup makes a diff.

Any estimate on vertical growth of plants?

Johnny

I wouldn't. I let mine get at least 4 sets of true leaves. Sure, we want to get in a hurry and get them transplanted. But, the more foliage, the better. That way, if a slug or bug happens to come by and munch some, the seedling can recover.

Kevin

In Columbia, sure you can, Sal.

I am a pepper novice. I would take Kevin's advice.

BTW: Your seedlings look great to me.

jtight - yes, I'm in a warm/tropical client that averages 75 degrees all year-round.

Ok, thanks Kevin. I'll give it another 2 weeks or so of growth and start to rotate them... I haven't been and some of that is showing in the blue ones (chocolate habs).

seysonn - Ever since switching out the soil, they have really taken off... they are sitting happily in some of that fresh compost :)

Just like everybody said, wait. A trick we use here in Texas to protect seedlings from cutworms is to loosely wrap the stem in regular strength tinfoil. Start about a 1/4" below the soil surface and go up 3". The plant will push the foil open as the stem expands. I also put little light duty wire circles around the transplants to discourage rabbits.
And, of course, you need a gri-gri bag out there to keep the Jaguars away...

Don't forget to "harden off" those tender seedlings!> GardenWeb Guide to Pepper Transplanting