DG-"ewwwwww

If you have a nearby university, find out who their entomologist is and take the pictures to him or her. That is weird. I have never seen anything like that. "
Ha, Ha, Ewwwwww is right! The University of Buffalo is the closest big school that may have an entomology dept. I will look into it. As a side note my four year old (almost five) is big into bugs and other creepy crawlers right now and he wants to be an entomologist when he grows up! (along with an astronut, deep sea diver and construction worker, but not a Fireman " Because I can't get dressed fast enough"

Celltech said "They look like hundreds af baby slugs"
That could be what they were as we do have a lot of slugs in our yard.

"Midges circling the wagons, preparing to defend themselves?"
Doug, if you could of seen them you would know how plausable that sounds. It was very surreal watching them slowly make this slimey, writhing, hypnotic circle dance. I have to wonder if it was some kind of mating thing going on.
I hope I see them again some day. I'll take a video this time and a sample of some of them.
Keep the answers coming,
Tom