Thanks for the confidence Bill! We'll see if its justified in a few months! lol

Here's a quick update. After seeing many of the posts here on OB, I decided to get an all purpose fungicide to help stem the losses of my plants that were really stacking up. Its been about 2 weeks since I sprayed and not only have there been zero new deaths, but the survivors are growing very rapidly. My guess is that enough of the agar was left in the nooks and crannies of the plants and it was a spring board for rot inducing fungus.

I wish I had gotten the fungicide earlier and I am passing along this information so that other "deflaskers" don't make the same mistake I did and wait until a majority of the plants are dead before you use the necessary chemicals to keep them alive. Its interesting to see that many of the plants that are alive, show clear signs that there was once rot and they probably would have died in a few days had I not interjected.
Here are some pics:

http://farm9.staticflickr.com/8518/8...b187cd5882.jpg
The plants that have survived by Isurus79, on Flickr

http://farm9.staticflickr.com/8226/8...59baaba8cc.jpg
The plants that have survived by Isurus79, on Flickr

http://farm9.staticflickr.com/8228/8...3a64498ec2.jpg
The plants that have survived by Isurus79, on Flickr

http://farm9.staticflickr.com/8510/8...2337fb2102.jpg
The plants that have survived by Isurus79, on Flickr

Ooh, thats good that u caught it in time! I'll keep my fingers crossed that it's gone for good!! What kind of fungicide did u use? I've heard it recommended to use "Captan" (don't know if I spelled that right?) is that what u got? I heard it was good b/c it is gentle on young seedlings, yet effective. Thank you for posting this Steve, it is very helpful! :) Good Luck growing those babies!

Glad I could help! I had to use the fungicide that was available to me at my local Home Depot, which was called Bonide Fungicide/Insecticide/Miticide.