For germinating, I just take a little plastic measuring cup - like the ones that comes on a bottle of cough syrup - fill it half full of water, and throw the seeds in. After they've been floating for an hour or two, I push 'em down under the water so they stay completely covered. I leave them in there on the kitchen counter for a day, then put them directly into the soil or other growing medium and put them in a tray by a sunny window. That's it, and I always get 95-100% germination rates.
As for the peat pellets, I'm going to go against the grain here and suggest you not even use them. I used them for several years, and they worked OK, but I gave them up a couple of years ago and I've been a lot happier ever since. Too often, I found that the peat powder absorbed water unevenly, especially if you let them dry out too much between waterings, and it was too difficult to maintain an even moisture profile throughout the entire pellet - if I pulled a pellet apart, I'd sometimes find parts of the pellet that were dry as dust, and other parts that were completely soaked.
So now for all my outdoor grows, I just take 3-inch peat pots, and fill them with soil. It's much easier to maintain a consistent level of moisture in the growing medium, and I also found that the plants develop much better root systems in the soil than they did in the peat pellets. I'll never use the pellets again.