I'm not sure what's in your potting mix. Try switching to one specifically designed for seed starting - it will be a sterile, soilless mix. As soon as I switched, my damping off problems stopped. The above advice about ventilation is also very important.

FLOW,

"I`ve lowered the lights but still no good.What am I doing wrong? I`m using Sunshine #1 pot mix."

As others have suggested, the Sunshine pot mix is probably not the best thing for seed starting. I am curious about those Rubbermaid tubs. What provisions have you made for drainage? Have you made holes in the bottom of the Rubbermaid tubs? You are the first I have heard who was using them. I have been using standard black plastic seed starting trays. A bit flimsy, but widely used.

As others have suggested, clean all of your stuff with dilute Chlorox. You probably do have an infection of damping off. Definitely don't reuse any starting medium.

I use overdriven fluorescent lights for extra brightness. Check elsewhere in this forum for info about overdriving fluorescents. How long is the timer set for on your lights? Blowing your seedlings gently with an electric fan is also a good idea.

Have you had your water tested? Some water is loaded with stuff that is not good for plants, and it can accumulate to toxic levels. Where possible, I use rain water and snow water to avoid using our tap water.

MM

As soon as you get your true leave start drying them out more.

I've heard that a thin layer of sand or grit on the soil can help against damping off, and I once tried very broken down pine duff, which seemed to have beneficial microbes to stop the bad ones.

Lisa

Less watering, plenty of air movement, cleansing trays, pots, etc with a bleach solution and I find wetting the sterile seed starting medium and watering the plants thru the first few waterings after transplanting with a solution of 8 oz hydrogen peroxide (the already diluted kind you buy in the drug store, not the pure stuff that will burn your skin) per gal of water helps prevent damping off.
I, too wonder about the rubbermaid containers. I use the aluminum throw away loaf pans with mumerous holes poked in the bottom for storage. You can view at link below.

Here is a link that might be useful: Seedlings, etc.

I use a mix of peat moss and pearlite. I always sterilize it. I put it in a dish pan and pour boiling water over it till it is kinda soupy. I allow it to cool off over night then let it drain through pots or a colander. I don't plant in it till the next day. I do this even if is a new bag of peat. I only sterilize what I need for 1 or 2 days of planting each time. I do not fertilize till the plant has it's first true sets of leaves. Use only half of the fertilizer that it says on the bag .

Watering your seedlings with Chamomile tea will help prevent damping off.
You also need to do all the things everyone else mentioned. I keep fans blowing over my g-house plants 24/7 as do most commercial growers. It's cheap insurance.
You'll be amazed how trouble free your seedlings will be when you follow all the advice you have received.
This sounds like a classic case of a common problem.

Bob