Mike
I'm growing these for the first time, Physalis peruviana, and I have had a tremendous amount of advice on the New Zealand forum about growing them. I originally got the seed from my aunt in N.Z. and I'm pretty sure she told me that you squish the berry onto a paper towel, spread it out very thinly and let them dry. Then flick them carefully off of the paper towel. I was going to try a coffee filter as I think it wouldn't 'absorb' the seed so much. You might want to ask the question on my thread in the NZ forum and see what the response would be. Apparently, they grow like weeds there.

Hope my friend Vetivert8 can help us because this was going to be my next question, too.

Shauna

Here is a link that might be useful: Cape gooseberries thread - NZ forum