Well... once i did read an interesting thing at wikipedia... dont know if its useful for you... anyway:

Damping off - Wikipedia, the free encyclopedia
Quote Originally Posted by the link above
Damping off can be prevented in many different ways, including germination in dryer conditions with better air circulation (but this slows germination), starting seedlings in sterilized soil, and/or spraying the soil with an anti-fungal known to work for this purpose, either a commercial one or a homemade solution, such as one made from chamomile tea or garlic. Similarly, ground cinnamon may be sprinkled on the soil to ward off the fungus.
Matricaria recutita - Wikipedia, the free encyclopedia
Quote Originally Posted by the link above
Chamomile tea is also thought to be useful to suppress fungal growth, for example, misting it over seedlings may prevent damping off.