When I pot up our seedlings, I use PRO-MIX BX with a fungicide... which has dramatically cut back the damping off which I have always had a problem with. I have been doing it this way with great success for the past three years now.
Once the seedlings are about 2- 2.5 inches tall, I repot them into one gallon pots (in most cases, no more than three per pot)
Many people have multiple ways that they prefer to start up daylily seed. I have tried many of them, but finally settled on this way which has been resulting in 85-90% success rate. In no way is this a judgement call on any other way of starting seed... it is only the way I have found the most success with here.
First, I start the seed in Jiffy Peat Pot greenhouses. I simply place the seed into contact with the medium.
I usually start them in October and November... they spend the winter in the greenhouse, then they get planted in the seedling beds come May. This year, I will start them in the basement~ putting them out in the greenhouse come February (to save heating costs!) This will result in our planting many less seedlings than in the past few years, but financially I have no choice in the matter.
Please contact me if I can answer any questions... I will do my best to offer what experience I have in this matter.