If the soil wrings out dry and just clumps, its fine in my experience. Depending on the temps and humidity in the room, you get condensation on the lid and sides. For me, it hasn't been a problem and hasn't affected my adults or larvae. I just wipe it off when I open the container. Why lots of nematodes, that I don't know. For me, pests seem to just appear and disappear and I can never quite figure it out. I haven't had any of the pests that I get bother my breeding so I don't get too worried. I just sterilize the substrate. I microwave my substrate so it gets super hot and then let it cool for a day. I know others disagree with microwaving and say it kills important bacteria, etc but I have not experienced any negative affects when I compare it to other methods. As always, this is just my experience with the species that I breed but others may disagree, etc. It seems like we all have different ways of breeding and what we consider important or not important. I figure as long as I'm getting large adults and multiple generations, what I'm doing is ok. The pests that bother me the most are fungus gnats! They are a huge nuisance when flying around the room and in the house. To avoid those, I try to make sure everything is sealed air tight and then I cover the big air holes with weed cloth or for larvae, use only pin holes small enough that they can't get in.