this almost works better when the roots and peat are dry, but you can do it when they are wet, too....just messier and stickier. place your fingers at the base of the root ball and massage it firmly. In this manner slowly break open the "ball", working your fingers gently into the roots in areas where the ball loosens up. Continue with this until you have it loose enough, and then try to wash the rest of the peat out. When dry, it will just fall away or you can remove it with your hands...harder to see whats going on when wet, but still do-able.You can afford to lose or break a few roots, and you probably will doing this, but the plant will survive, and in the long run it will be much happier if you can get the peat out of there. After handling the roots, however, it is important that you wait awhile (a week is sufficient) before watering once you repot....this gives the roots a chance to heal up and callous over, thus preventing root rot.

As far as the white fungus looking things, it could be mold or it could be scale or pest related. I'd have to see it....getting rid of the mix and planting in some well-draining soil, along with good light and air circulation should go a long ways toward removing the problem.

I take mine to the yard and use a hose with a spray head. I lay the roots across my fingers, making sure the tap root receives some protection. Then I blast, rolling the peat ball around as described above, starting at the tip and working up towards the plant. The fine roots may sustain some damage but it is well worth it...as you've already discovered. I don't know if it is fungus or pest without a pic, but your efforts have revealed a developing problem. Good on you!

I tried with dry soil and roots, and it is so much easier. I think I broke more than a few roots though... Hopefully, these guys can survive and thrive. Thank you so much for your advice. Right now I have them rested bare rooted. Is it bad to let the roots dry out of soil? I need to go get more clay pots (sign of onset of addiction). I took them out of pots they came in because some of them were soaking wet from sitting in water :(

I think the white stuff is defenitely fungus. I removed the white stuff from the soil last night (I didn't want it to release spores or something) and today I see white fuzzy stuff (mycelia?) growing already. I washed the plant as much as I could and put the plastic pot in diluted bleach. The plant is separated from others just in case. I'm worried about this one. Does anyone know any safe fungicide?
Thanks

Just let it dry out and place in an area with little humidity. If the leaves and stems are nice and turgid (firm and crisp), then just pot in your new mix, dry as can be, and in a clay pot, and don't water until the leaves and stems start to go a little soft (this will not hurt the plant...it is normal for them to do this...in fact, it is one way to gauge when to water, especially in the winter).
I have read many reports of neem oil being safe for jades, but when reading about the product itself, it says not to use for jades....I'm sure the masses on GW know what they are talking about, though. I've never used it, mostly because they don't have straight neem oil at my local supply stores. The other thing you can do, is spray with a 2:1 or even 1:1 mix of H2O/rubbing alcohol or wipe the mold and fungus away with some alcohol on a q-tip or cotton swab.