I think this is gross......please identify

It almost looks like some sort of wild mushroom, which means either you're watering too much or the soil wasn't properly sterilized by the manufacturer. Simply repot the plant into clean soil and be careful that none of the bits go along into the new pot. Then bin or burn the original pot contents.

Shouldn't worry the plant - the fungus will be growing on the bark or wood pulp in the compost.
 We are probably going to get more of this with all the stuff they are chucking in compost.

Its a fungus for sure...I had some last year from my compost too

Thankyou all for your help - it was worrying me.  I will repot them soon - I take it the fruit from those 2 plants will be ok to use?  (Nice to know I'm not the only one thats come across this problem..)   Thanks again 

It may help if you maintain your compost a little drier - fungues does get encouraged by the damp.

I had some peat free compost from B&Q earlier in the year and it has produced a fine crop of fungus. It was full of twiggy bits and also seems to set rock hard in the pot if allowed to dry out. Definitely not suitable for seeds, although it was described as such on the packet. If I had been a bit brighter I should have taken it back.

oh and each 70 litre bag weighed so much that I could only just carry it!

I had these growing around my beans and sweetcorn last year, when I sowed them in toilet rolls  :blink: . I'm sure they're harmless to you and don't do the plants any harm either. Personally I think they're fascinating 

If it;s Jew's ear, looks like it's edible when cooked. Good in soups apparently. http://www.first-nature.com/fungi/id_guide/heterobasidiomycetes/auricularia_auricula-judae.htm but it may be another fungus, so check with an expert.

Not wishing to cause alarm http://www.telegraph.co.uk/news/uknews/2116523/Gardener-killed-by-fungus-in-his-compost.html

Hi - it's not Jew's Ear (now often called Ear Fungus) - it looks like it's from a family called the Ascomycetes but couldn't be sure of species, possibly a Peziza. My Roger Philips mushroom book is at work and though the website is excellent it's not as easy to browse...
http://www.rogersmushrooms.com/gallery/DisplayBlock~bid~6585~gid~~source~gallerydefault.asp
looks quite like it...
Harmless, inedible, doing a job of breaking something up...

Michael