Not a fan of the peat pellets here, either. Way to soggy and messy.
I've had good luck with Gardener's Supply seed germination mix, as well as Metro Mix (I think it was the 330). Bought some Fafards this year to try after hearing good things about it as well. I've never had an issue with damping off with any of my seed starting mixes. I probably just jinxed myself, didn't I