Hi javaMom,
I usually add the alfalfa pellets dry when turning the soil. I did notice that they will absorb water and swell. If it's close to the surface it will look like something has been burrowing under the soil. I have also used the pellets as a top dressing and watered it immediately after. Again, this allows the pellets to swell and start to breakdown. otherwise, I envision peter and his pals visiting frequently which brings me to the Milorganite. The smell is a deterrent for the fuzzy bunnies and I haven't noticed anything adverse using it. Milorganite has iron in it so the foliage is healthy and dark green...
Edited to add that I only sprinkle the milorganite on the surface after planting. Someone in a local club said that it will burn the roots, not sure how true that is and its only 5-2-0 if memory serves me correctly. Maybe others will lend some insight soon.