-burnout-

I am trying to germinate some seeds from my last dime bag w/ the wet paper towel method. I have about eight seeds in a cup covered by the wet paper towels sitting on my heater thing in the cellar. They have been down there for about 3 days and only one has begun to crack open, but thats not my problem. The cup has an increbibly awfull smell. Could this be fungus or bacteria? And one more question, I plan to grow these outside in my own soil,in my own pots, and what would be the best mixture? I can get almost anything because I live right across the street from a nursary such as cow manure, perlite, vermiculite, and potting soil. Thanks ahead of time.