Hi Pam,
the system I used this season was with newspaperrolls. I saw this item in a gardening magazine (looks like this :
http://www.peppermintfarm.com/images/PotMaker.jpg). I made one myself size 8cm, but I made smaller ones just by rolling the newspaper strips over a tube (approx 2,5cm / 1 inch). I sow my seeds (2 or 3 per small roll) and as soon as they can go under the lights I can take them out individually and let the rest in the heated propagator. I let them artificial sunbath for some time, thinning already if necessary. When they become to big for the small rolls - I (divide and) transplant them into the bigger pots.
This system worked perfectly for me - you can prolongue the time for transplanting (depending on the height of the initial roll you can let them root deep), you can handle them very easy (if necessary with the help of the label in the pot), they do not get rootbound in the newspaperpots (when they have to little space they go 'outside' the pot,..
You can even plant them out with the pot so there is very little disturbance to the roots but even when you remove the newspaper there is little or no damage to the roots as well (I do remove the paper going from small to medium pots, and mostly to the bigger pots as well - the easiest when the newspaper is a bit wet, most of the time you let the set in water anyway before transplanting so...)
It was really a big succes this year for most of my seeds (tomatoes, melons, peppers,...) and I wouldn't do it an other way anymore (until I find an even better way of doing it but chances are small I guess)
It takes a little bit more time to fill the rolls then to fill the complete 'pan' or flats you would normally use but that is easily gained back by not having to dig them out, not disturbing seeds that haven't germinated yet,...
