I might clip off the netting holding the peat together and then just let whatever is loose fall away. Take what's left of the tiny root ball that's there and nestle it gently in some starter mix and continue on like nothing happened. ;) As long as you're gentle, you can move seedlings of any age, in my experience.

You can transplant them at any time. They are just easier to handle when they get a bit bigger. I'd just leave them in the peat pots for a couple of days - watch them closely - and then transplant them DEEP into plastic containers with any good soil-less potting mix.

The main problems with the peat pots - you did say pots rather than peat pellets right? - won't become an issue for a few days.

Dave

Yes, they are in peat pots. I will definitely transplant them in a few days into plastic containers- they are looking leggy even though they're nearly on the lights, and I can't keep the soil moist. I learned that lesson the hard way!

Leggy plants are also caused by too warm growing conditions in addition to the lighting issue. 60-65 is the ideal once germinated.

Dave

Peat "pots" - are not nearly the problem of peat "pellets". With peat pots, you are filling them with a mix of some sort, if you are using a decent soil-less mix, you shouldnt have a problem. People often use the wrong word when referring to the little expanding Jiffy pellets that all of the big box stores sell now - they are the problem.