I heard about red bugs in Spanish Moss on ATP before. I never had any problems with it myself, so I did a little research. I found several site that suggest that this is false or at least not likely. Any moss the is infested with red bugs, was most likely gathered off the ground where the bugs live.
Here are several links to pages that say it is not true. The first link provides the most authoritative information.
"It’s a common misconception that they live in Spanish Moss; they actually live in the undergrowth surrounding the trees that support the moss, said Nancy Hinkle, an entomology professor at the University of Georgia’s Department of Entomology."
http://www.caes.uga.edu/applic...
http://www.eattheweeds.com/spa...
http://www.examiner.com/articl...
