Ah, the great peat pot debate. Since I frequently answer to the name "Pete", I can claim a certain expertise with anything containing peat
. I like them. Who cares about the various molds (?) - doesn't seem to affect the final product. Roots easily grow through the peat pot. Potting up to a larger size is easy - just bury the whole pot in the larger size container. When I tansplant the seedling to the garden, there are bunches of roots that have grown out of the pots. Make sure the peat pot is totally buried in the garden and there is no problems with wicking. The pots disintigrate if you happen to water the garden.
I use the same type of 2" square pots that HeirloomNewb uses. They work just fine. Did I mention that they are very easy to pot up with? This may not be the preferred method for people with 250 tomatoes, but for the person with 50 like me, it works great.