Seedlings with brownish patches on leaves & stunted growth. Is the soil causing this?

I asked about these seedlings a few days ago regarding their slow growth and drooping leaves; they pointed out that it was most likely the soil's nutrient content, and poor drainage. I haven't done anything to them for the last few days just so i could see if the problems got worse, and they have. The first plant that is drooping has a leaf that i think is beginning to twist, both of them have extremely slow growth, they're 8 days old, and both have the light brownish patches. The leaves are getting a lighter green color as well. I used a different color setting on the last picture to demonstrate this. They're supposed to be a nice solid green like they used to be.

The soil has time release nutrients that i thought could be flushed out prior to planting (like liquid nutes), but that apparently releases even more nutes from the little capsules. I also noticed that the soil was quite compact a few days ago so i loosened it up by squeezing the sides of the pots.

I just want to know if these symptoms (leaf twisting, patches, drooping, stunted growth) are consistent with over watering (poor drainage) or nutrient burn.

Also, would it be possible to transplant these into seed raising soil mix at this age like i should have done. Would that soil need to be replaced afterwards as well? I just can't find many soils without the stupid time release nutes.




I haven't buried the stretched stems yet (not enough light on the first two days) because i'm not keen on the soil.

What soil are you using?

This: http://www.thewarehouse.co.nz/red/catalog/product/Just-Potting-Mix-40L?SKU=483395

$4 for 40L i use for outdoor plants. It has some bark or wood chips in it along with soil, with barley any perlite.

Was thinking of replacing it with this $5 for 5L: http://www.thewarehouse.co.nz/red/catalog/product/Kiwi-Seeds-Raise-Mix-5L?SKU=492028