Basil troubles

[Swainer]

I am growing some basil and have run into some dying leaves. Can anyone tell me what this problem is? The closest I can find in my book & in an online search is stem rot. But I'm still not sure that's it. Anyone have an idea?

[GpsFrontier]

What growing media are you using? In the picture it looks like peat moss, and that looks way to wet (suffocating the roots). I would never use peat moss as a growing media, it absorbs to much water, and compacts. So the roots wont be able to get enough air to breath.