Found out why my little balsam seeds were producing cotyledons inside the pod. Turns out most frequently that sprouting while still inside the pod is a result of too much rainfall or moist conditions.

Now, with the rainfall we HAVEN'T been getting here in houston, one would sit and scratch their head about how that could be the cause... but, as i previously thought, that bed is not draining as well as it should and as a result i think that aided in not only killing the rose bushes that were planted there but  caused the too-moist conditions that confused the seeds into thinking it was time to germinate.

Also read that keeping seed in plastic bags or plastic containers where moisture cannot escape will also cause them to germinate prematurely. Seems seed must be absolutely dry before putting it in any moisture barricaded vessel of any kind.

a nice pdf file of a research study conducted my Mississippi State can be found here for a bit more info, and other sites seem to confirm the heavy rainfall (moisture) theory as well.