BillC said:

I have NO idea what's wrong with them! Is this insects, mold, or
sickness?

http://ingsoc.crappyhosting.com/peon..._problem_1.jpg

http://ingsoc.crappyhosting.com/peon..._problem_2.jpg

The all regrew fine, the problem started right after the leaves
started to turn green. They are all budding. I fertilize with Osmocote
and Algoflash.

The main thing I want to know of course is: WHAT CAN I DO TO TREAT
THIS?

Well, it doesn't look exactly like botrytis blight (the most typical disease
of peonies) but I don't know if your pictures are good enough to rule it
out completely. It certainly looks like some form of fungal or bacterial
disease.

Here are a couple of links on botrytis:

http://www.urbanext.uiuc.edu/focus/per_paeona.html
http://www.ext.vt.edu/pubs/plantdise...2/450-602.html

Perhaps the best thing to do would be to collect a sample and submit
it for diagnosis at your state extension service (assuming you're in the
US).

With peonies, the most critical care is in removing all foliage in the autumn,
and cutting away any diseased or spotted foliage during the growin season.
*Discard* rather than compost the old and diseases foliage.
--
Pat in Plymouth MI

Any technology distinguishable from magic is insufficiently advanced.
(attributed to Don Marti)