Sounds like those little buggers, THRIPS. They are strictly nocturnal, tiny, white aphidy thins. Had this problem myself and believe me, they will spread fast. It's too late to save the affected plants, so burn them immediately. A full 'Apocalypse Now' event. Also, dust down the unaffected plants with Malathion, to stop any late hatching eggs- if you are organic, I've heard that sulphur dust does a similar job. Robert Parr wrote: >I woke up today to some sort of odd disease attacking my pepper plants. > >I'm growing around six or seven hundred seedlings. About 1/4 of them >are under attack from some kind of stem disease. > >The stems looked almost chewed in a variety of places - but there are no >insects. Some of the leaf stems (forget what they're called; it's the >piece where the leaf joins the stem) also have this problem. > >The stems, in places, are brown and sunken. Obviously no nutrition can >get up the stem after this occurs, so the plants are wilting. > >The stems are not girdled - they're not being attacked at the soil line, >so I don't think this is damping off. > > "If you didn't put chile in it, don't pretend to know." That which doesn't kill us, makes us strong ! <Nietzsche> Andrew Healy