Mine grow in regular soil. I don't think they like a fertilized soil and do better in a poorer soil and definately need sun. You would'nt belive some of the mistakes i made when first starting out. Thats part of the fun. Learning "what next?" LOL ; )
Good luck and have fun!

Sounds like your watering too much if you lost most of them to damping off. I also wouldnt suggest giving them any fertilizer until they are well established, as this could also be a reason they aren't growing. I would sow them in regular old soil, allowing it to become partially dry in between waterings, rather than always keeping it moist.

Damping off is a fungal disease. Are you starting your seedlings in a sterile seed starting mix?

Thanks everyone! You know what - I think you guys are right. I think I am probably watering the poor little things too much. I will let the soil go dry in between waterings. Again thanks for the helpful advice! :-)

When I start seeds I water only when the plants look a little droopy. The solless mix also turns a dark tan color when its fairly dry, which is also a good indicator. I do use a seedling fertilizer after the first true leaves. PHC is the brand and I buy it from Gardeners Supply in VT. They make several types, and I use the one for seedlings.