Question
The one and only time I have ever used cypress mulch (purchased from Home Depot) I had a very weird problem.  I used the mulch mainly for aesthetics on flowers and shrubbery on my front lawn.  I noticed what looked like orange crab legs emerging from mulch approximately 2 weeks after being spread.  Upon closer look, there were eggs located under some of the legs.  I removed some of the eggs, placed them in clear plastic bag to see what would happen.  Overnight the eggs began to open and the legs were developing.  The odor was terrible.  I tried to remove all eggs and legs, but they would appear other areas of the mulch.  Finally all the mulch had to be completely removed and replaced.  Could this possibly have been a fungus (strongly resembling crab legs) or crabs (I never saw a fully developed crab)?  This happened in July 2006 and I have been so curious as to what it could have been.  One last note is that I live in Indiana, may or may not help with my question.  I would extremely appreciate your feedback.

Answer
Hi Sherry, the orange 'eggs' were almost certainly fungal spores that are released from the fungi (mushrooms) and they posed absolutely ho threat to either you or your garden. They probably looked something like this ? (see link below) The orange 'legs' could be considered to be a form of root, with which the fungus feeds. NASA is currently studying funghi to find out how the spores are launched into the air because it is done with an equivalent 6G in human terms and nobody can understand how they manage it- we have many things to learn from nature.

http://www.blueswami.com/common_fungi.html

If they did then they are very common and make up part of the billions of organisms that can be found in the soil. These organisms are vitally important and could be termed as being the 'stomach' of our planet as they digest plant matter (and even mulch) and turn it into a useful substance- known as 'humus'

If I were you I would do some research on the natural processes that take place within the soil- it's extremely interesting stuff and you will see that it poses us no threat whatsoever.
See my site for more soil info www.ecologicagardens.com

Jonathan