your setup is too much for a seedling. Seedlings need less drastic situation. Your setup results in too high a temps aroung your seedling, could cause heat burn and more importantly, if your plants survives, it will have more chance to become male or hermi. Keep your lights further and later bring them closer when the seedling has grown a bit more. Seedlings at that age need a mellow environment. (1 100w cfl 2-3 inches away is fine until later when they have more leaves.)

As for fungi infestation, using neem is a good idea. Kill the bastards before they spread although that type of fungi does not really pose a seroius problem for mature plants.