I suppose once the stems are weakened, they're done for. I have had moulds on the surface of seed trays before and damping off hasn't taken hold - maybe they've been a different kind of fungus?
Anyhoo, here are all the tips I found online (once I got off [on] my arse and looked) for preventing/containing damping off:
Use a sprinkling of cinnamon on the soil surface, garlic and chamomile tea mists to keep fungus at bay.
Circulate air, using a gentle fan intermittently.
Stir up soil surface.
Don?t over-water plants, letting the surface of the soil dry out before re-watering.
Water preferably from below (or by misting).
Don?t use tray covers (as in covered propagators).
Keep plants in the warm and sun ? damp, dark and cold encourage fungus.
Apply sphagnum moss, ground finely, to the soil surface.
Soak seeds in water with a crushed garlic clove before sowing.
Add a tablespoon of vinegar per gallon of tap water (for watering), as tap water is alkaline and therefore more conducive to fungus and damping off; a slightly acid water will help prevent damping off.
Sow seeds on the soil surface and cover with vermiculate or similar ? a substance less likely to harbour fungal spores. Shallow sowing means less expanse of stem exposed to the soil/compost and therefore any fungus in it.
HTH, bocca. I should have looked online in the first place really - have answered my own question!