Problem with seedlings? Can anyone help me to identify problem?

[PhatJay]

I read a whole book on growing before doing this

It wasn't a very good book if it suggested a 400w MH light was good for seedlings.

So what ideally should the distance be between the mh and the plants if either of you guys can help?

You have the distance about right for a more mature plant, but if you want to waste all that electricity and use your 400w MH for seedlings then the distance should be around 4-5ft. But I really would suggest investing in CFL lighting for the seedling/cutting stage. I am talking about $10-$30 which will pay for itself in no time at all.