Leaves curling up and dropping?

[thirdcoasttx]

So my first isleno plant was doing good growing taller and putting out new leaves every day. One day out of no where it was toppled over and the stem had gone soft. I figured I over watered and damping off occured. Now I have one isleno that dropped a leave and the others seem to be curling around the edges ( first pic ). The second pic is a habanero that is showing the same signs of curling on the edge of the leaves. All help is appreciated.

 

[geeme]

It sounds like you don't know about cotyledons.... my apologies if you already do, but here's a primer if you don't.
 
Cotyledons are often referred to as "seed leaves" - they are the first "leaves" to form out of the seed casing. However, they aren't true leaves. If you look at the second picture, that plant has two true leaves and two cotyledons. You can kind of think of cotyledons in the same way as our umbellical cords - they shrivel up and fall off when they're no longer needed. Given what's in the top pic, it looks like the "leaf" that is folded over is a cotyledon. Don't worry about it - it's just telling you it's usefulness to the plant is coming to an end.
 
More on Wikipedia: http://en.wikipedia.org/wiki/Cotyledon

 

[thirdcoasttx]

I am a complete noob so that is all useful info. I don't know if you can see in the first picture the leaf that is curled up and the one opposite have Brown spots on the tip. Those two popped with helmet head there was a bigger leaf opposite the one in the pic that randomly fell off yesterday.