Bit of an update. I manually removed the seed case from chilli #1 and in the process ripped the ends of the cotyledons, but they've been going for a couple of days and haven't died yet so I guess I didn't mortally wound it. Chilli #2 is pretty much dead, I guess I just didn't plant it deep enough because it was emerging from the soil without a proper stem from the looks of it, and the little green appendage to the seed pictured in the previous post is brown now, so I'm ready to throw it away. However, I've planted another chilli, which I have named "chilli #2.5", and this time I've just thrown it straight in a 4" pot with some cling film over the top until it sprouts, because those little 2" cells are a bugger to water, they go bone dry overnight literally.
As far as the basils go, I've moved basil #1 into a 4" pot and it's doing beautifully, second set of true leaves has fully formed and they are about half the size of the first set now. Basil #2 (the one that had the sick leaf tip and stunted growth) on the other hand, is completely dead. When I woke up one morning a couple of days ago, the cotyledons had turned purple and gone droopy and the true leaves had closed up. I gave it a thorough watering and by the next day it had picked up and I could see another set of leaves starting to form, but by the next day it was even droopier than before, and at this point I decided to just scrap it instead of trying to revive it again. Considering it perked up after being watered, I was thinking maybe it was just dehydrated, but I watered it just as much as it's counterpart and that was absolutely thriving. I'm probably going to plant another basil tomorrow to replace the dead one, cause my mum wanted one to put on her windowsill. It's not like I don't have an envelope of 500 seeds to spare.
I'll upload some new photos tomorrow maybe.