You may want to check out these links.
http://www.growsundews.com/rinsing_peat ... lants.html
http://www.terraforums.com/forums/showt ... n-Dawnstar
http://www.flytrapcare.com/phpBB3/can-i ... t9226.html
To break down a few useful tips in your situation.
A. Don't expose the media to excessive light or water until you see signs of germination. Using bright light before there is germination causes algae and moss growth.
B. Post pictures of the brand of LFSM you use... some brands are high quality and others lower, some will require successive and multiple cleanings, while others may need only one or two soaks in pure water. (Aaron, "sundewman")
C. WASH all of the components you use when trying for seedlings, even when using peat moss you may have mature plants before needing to transplant (Tamlin).
D. If you use LFSM you will need to aerate it using agregates like perlite, pumice, vermiculute, charcoal, sand (blasting or pool filter granite/silica), coconut husk 'chips'. The best agregate in high humidity and stale air conditions by far is sand, while perlite/vermiculite/orchid bark being the worst. If you use an agregate (which is recommended to get oxygen to the plants roots and help flush the media of water / other nutrients. (Steve), (Tamlin), and (Sundewman).
In my experience LFSM will require less washing than milled peat,
but most sundews do better with milled peat in the long run in. (Tamlin)
Algae/mosses/byrophytes will regress a plants health and or stifle it's active growth, further infestation will encourage additional pests like fungus gnats.
Don't give up though! Plants will germinate for a long time after you sow them!