Did you mix all the dry ingredients together before adding the water? Was it portland cement you used and not concrete? Was the bag of cement new and smooth or had it started to harden? Did you use the peat moss right out of the bag or did you sift it?
"When will it harden"--It should start to set up in as little as 30 minutes, depending on the wetness of the mix, the weather and the ingredients. It should be gray right from the moment you mix the dry ingredients. Everything should be coated with the portland cement, which is gray.
Where did you get the directions that you followed?
Yes, you can use a basket but the basket gets destroyed. You form on the inside of the basket but instead of unmolding in 24 hours, you unmold in 48 hours. Hope this helps.

Keep trying Yvonne. Once you get it figured out you will have a great time. It happens to all of us especially when we first start. Some days things just don't work like you think they should. One time without thinking I used water out of the hose laying in the sun and every one of the pots fell apart. Assumed it was cause the water was hot, but by the time I noticed it was already mixed. I have a place I am eventually going to make a path and that is where all my mistakes go. Good Luck and keep us posted. Soon you will be doing the happy dance!
Kathy

Don't get discouraged. One of the most important things you can do other than mix, mix, mix those dry ingredients is to pack the mixture into your molds very, very tightly. Make sure that Portland cement is fresh.

What temperature were you curing your trought at? Is it too cold? Don't know where you live, but it is getting chilly out at night and the days haven't been especially warm either.

Also, hot water will make the mix easier to work with and has no effect on strength. I use hot water all the time. If you use a wicker basket, line it first with a plastic bag. This way it will unmold much easier and you will be able to use tha basket again.