I would get the lights 1-2" away from them, set up a fan and get them out of peat pots into a plastic container. peat pots hae a terrible time wicking water and/or retaining water.

Your watering system and temperature seems to be accurate.

Oh, did they fall over at the stem and die or did the seedlings get crispy/shriveled from the top down and die?

Pictures would help A LOT

Keriann~

Thanks for the advice! I have moved the lights down and transplanted the seedlings to plastic pots. The soil is OK ... it's got peat and vermiculite, as well as soil, but is pretty fluffy. I put a little muffin fan at the end of the trays to circulate the air. I'll be watching to see that the transplanting is OK, and then giving them their first major watering later today --- I gave them a bit two days ago. So far, they seem to have tolerated the transplanting and my ham-handed treatment pretty well.