Darn, from the pics there doesn't seem to be an obvious problem. Personally, I would repot it in high quality, long fiber spagnum, but do so in a plastic basket. That way it will retain more moisture, but also have more air movement around the roots. Any spikes that come out low and horizontal will also poke out a hole and won't rot in the pot.
Paul's idea of rot is probably a good one too. I think hitting it with some physan won't hurt and you will also want to get some KLN treatment (or other root stimulant) to get a good root system going.
Finally, just how cold does it get at night where it grows? For that matter, how warm does it get during the day? These guys really do prefer fairly warm temperatures.
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