Last year, I used peat pellets(Germination was good, but I feel like the roots are a little stunted).
This year, I did things differently:
I started in December using small seed cell starter trays and commercial seed starter mix. I WILL NEVER DO THIS AGAIN! I used "Miracle" Gro seed starter (I found that the "miracle" is that anything grows in it) - BUGS BUGS BUGS. Aphids to be exact. I started seeds in doors under my grow light for warmth. Germination rate was excellent. Started having aphid trouble about week 4. I used cotton swabs until I couldn't control them any more. Used Organocide. Took care of the aphids, but the seedlings weren't very strong and suffered greatly. Most of them died, or were so unhealthy that a fresh start was better than trying to nurse them back to health.
I got rid of all my stuff(better safe than sorry). That left me getting a late start and:
My new preferred method BY FAR. Solo cups with 70% ProMix HP(expensive I know) and 30% compost/manure blend. I really believe that the seedlings benefit from a larger starting container, and decent growing medium. I am off to a late start and have a severely reduced range of variety(some of my first round of seedlings were the only seeds I had), but I have a long growing season and i am hopeful. I now have some stuff in the ground and they are doing great!
What is your preferred method?
P.S. I know this is covered 100 times over, but I felt like sharing my experience on a fresh thread.(Please dont shoot the sharer)