I think it would be a mistake to use that incubator again. Those things are crap. As far as the vermiculite, I agree that it looks too wet. That stuff looks like the really fine stuff that they sell in the garden section of Lowes or HD. If it is, it takes much less water to soak it than the more coarse stuff. The vermiculite should feel almost dry to the touch. A wise man once told me, better too dry than too wet. (I think he meant eggs). You can always add more water, but too wet will definitely kill eggs.