Moldy soil, please help!

Hi Moreless,

I tried to do everything as I've read on here to create healthy gardening soil for vegetables but I have apparently failed pretty badly. I assume the soil must be entirely too acidic, but I haven't had a chance to have it tested yet at the free testing lab nearby.

I have 2 4x4 square foot gardens each with a thin layer of fuzzy white mold covering the top of the soil, directly underneath the mulch. Not only that but the area is infested with flies.

I did the 4lb:1lb:4lb/44sqft limestome, gypsum, bonemeal and added that to the soil, which is a mixture of soil and peat moss. Then did a 1:2 ratio of fish emulsion and BSM, but perhaps I added too much of this? It's covered in about 2 inches of salt marsh hay as the mulch. I watered it and let it sit for about 6 days as recommended, but this was the result.

Is there anything I can do?? Please let me know, thanks in advance.