I've been a lurker here for a very long time, never posted much, but when I saw your question, I just had to answer!
I haven't had much success with the red cups butI have excellent results with the plastic shoe boxes, or better
still a plastic sweater box. I poke some holes in the bottoms for drainage with a heated screwdriver. Then fill about half full of potting soil, water well and allow to drain. Plant your seeds in the boxes and put the lid on. Leave the lid on and do not water at all. I place the box in a fairly shady place. When the seedlings touch the lid, the lid is removed and you can begin watering as needed.
I'm In Texas and my daylillies do better in part shade, but I guess you could move the box to a sunnier location once the lid is off. I have left them growing in the box untill they were 8+ inchea tall.
The advantages to doing it this way are the boxes don't cost much at the Dollar Store and are reuseable the next year,
and you can plant the boxes in rows and label them, especially if you use the sweater boxes, and it doesn't take as much water.
Hope this helps!

Hi Mona,
Yes you should dry them at least for a few days. I harvest them as the pods begin to split. I empty the seeds into a paper envelope right away with either the paper tag or wire I used to mark the cross. I dry mine for a week or two, and then put them in small ziploc bacs and mark the cross on the front. Then they co into the refridgerator in the basement until planting time.

I started using 20 oz cups with 4 holes melted around the bottom, but not on the bottom with a hot wood burning tool. I can do a bunch of cups out at the picnic table in about a half hour. I will plant 3 to 6 seeds per cup and they are good in the cups until transplanting. I use Miracle Grow potting soil because it works for me and has a time release fertilizer that seems to kick in about the time the seedlings need it. I tried seed starting mixes, but didn't like them.

I will probably stop starting seeds in cups and pots in the near future. After visiting Curt Hansons a few weeks ago, I think he is probably doing it the most efficient way. He direct sows the seed in November, and they stay in the bed for a year or two. Here are pics. Its plant them and forget them, except for an occasional weeding and watering.

This years seedlings.

To the right are last years, and the left the year before. Lined out seedlings behind them. I will be asking him more questions about how he works the system when I go over there again.

Its hard to argue with success, I have the room at a friends around the corner from here, we began putting in the new beds last fall.