Transplanting question

when you transplant from a cup to a larger pot, and your plant has stretched a bit above the surface, should I bring the soil level in the new pot up to below the bottom of the bean shaped leaves?

Also, is it normal for the bottom bean shaped leaves to be curling down a bit? Are the leaves "drooping" when they do that?

Maybe a 1/2 an inch under those first two leaves. That would be fine.

Those bean shaped leaves are the cotyledons, and it's normal for them to curl down. They only collect light until the proper leaves have formed, and then their work is done so they curl down and may eventually fall off..