Yesterday (10.19.04) some 'stuff' appeared in our 2 week old mulch and around in the lawn near it. It looked like some one had dumped the ice from their soft drink cup. When I tried to pick it up I was surprised to have it feel like Jello. What is this stuff? How do you get it? Should I be concerned about it?

Usually most of the stuff growing and breeding in compost piles or natural mulches are in the bacteria and fungi classes. Most nitrogen sources breed various bacterial forms, while most carbon sources (like most mulches) feed various fungal forms. Most of the fungi growing in compost piles or in our rich organic soils are beneficial not harmful to your crops or to you.

Mushrooms growing in the lawn or garden, may look strange or bad to some folks, but it is a sign of rich high fungal humus or compost in or near the topsoil. It's as good thing! After a few weeks of regular foliar/soil drenching with compost tea recipes, it normally goes away.

It may be slime mold. Slime molds have the most hideous and obvious fruiting bodies. These bodies when moist, seemingly appear overnight, and look like dog vomitus. White, to gold, to pink, these bodies may dot a mulched area. They look ugly but are not dangerous.
A liquid lime mix sprinkled on the top of the mulch will suffice (Example: AGGRAND Lime Plus).