Instead of starting our seeds in those plastic 6-pack containers you get from the nurseries, this year we've been creating small, biodegradable, newspaper cups as described here.
They are simple and easy to make. Some newspaper, a glass, wrap it around then give it a twist and you are done. The greatest part is that the plants don't get abused when you transplant them into the ground. You just plant the whole newspaper cup and the roots break right through.