advice on transplant

Planted seeds on the 6th. They came up a few days later. Anyway here are my results so far. Im freaking out cause the plants are stretching. I have moved the lights lower to about 1 or 2 inchs from the plants. 18/6 cycle. The start of this week I used some nuets GH flora micro, flora bloom & flora grow 5ml for 5 gals of RO water. Things did not look good within 24 hours. One of the plants started to get spots as you can see in the picture with the plant labeled #8. On Wensday morning I removed the chem water, cleaned out the water res and filled with 5 gals of distilled water. Nothing added. I let them get water for 30 minutes to help flush them out. I have not watered them since. Finnally the bottom of the peat pots are starting to dry a little. I tested my soil and water yesterday. The water is fine, 6.5 ph I guess as I'm not good with those color matching guides, but it was with in the range it should be. temp stays around 70 to 75 degrees most of the day. The soil shows a little low with all 3 NPK. So I figure this is good as it's a sign my soil is not overloaded. I figure better a little then too much.
I have 8 2 gal pots, that I want to transplant these too. I am limited as to what I can buy around here. 1 I hate ordering off the net as I don't like to wait for a company to send me something. You never know how that is going to go. Could send it in 2 days, could send it in 2 weeks. There is not much at the depot and lowes is not much help either. There is only one garden shop open around here as it winter and most close their business down during this time. I called this morning and was told they have a soilless mix. The guy was not sure of the brand as it's in the back of the building and he did not seem to happy to take a look. What else should I be looking to ad to this? I have been reading and it gets confusing. Soilless mix with, perlite or vermiculite (Spelling?). How much of these should I ad? 1/3, 1/3, 1/3? Also I read perlite retains a lot of water and have concerns about using it. Any advice I can get to help these plants look a little better would be great. I know transplant time will be here very soon and want to make sure I am ready. I also plan on leaveing the plants in the jiffy pots as they are supposed to just decompose inside the larger container, once surrounded by soil.

lights could be a little closer......also a tiny fan in there blowing the sprouts thickens stems and couldnt hurt.....

The lights are about 1 to 2 inchs from the plants. I moved the light up so I could get under for a pic. If you look at the far end of the light pic, that is more acurate of the distance. It's only the one side I had to sit under that's lifted. I have had a fan blowing 24/7 and it's moving the little guys pretty well. Sorry forgot to post about that.

now that the lights are closer, they'll slow a bit in stretching but the damage is done. the fan will help greatly but they may have to be staked with plastic straws soon, just until their stems do fill out. do not transplant yet, I'd wait a few weeks till they are stronger and can take the transplant stress better. they're also a little too young, yet. other than that, they look healthy, just tall!