Wouldn't worry about it. I transplant 3" pots of seed starting mix into it all the time. Most seed starting recipies are peat based anyway. Some people even start their seeds in 511.

5-1-1 is pretty forgiving, especially with small plants.
I wouldn't worry about bare-rooting unless the root-ball is large and covered with bad old soil.

Josh

If the roots in the plug are really tight, they need to be loosened. You might even rip the bottom of the roots off if they are too tight - I do that to everything I transplant from cell packs up to 6" pots. If the roots aren't loose, tease them apart with a skewer or other handy tool that won't damage the roots ..... but be sure to keep them moist.

Al

Thank guys! Good to know I don't have much to worry about anymore.