Thought I'd stop in. I have seen you posting in the ptsd thread. I'll pull up a chair!
Try the led about 12''-18'' away. That should be about right, they really don't need much light at the start though, so you could put it right at the top for a few days, then drop it to 12''-18'' when they are 1 week old.
I put clear plastic party cups over the seedlings for 1st few days (like mini greenhouses) That helps loads at the start too!