I'm not sure peat moss would work well as chicken bedding, though. It has to be dampened to use for horses, otherwise it produces an incredible blizzard of fine brown dust anytime anything moves near it. Damp bedding in a chicken coop just does not sound like a good idea to me. In a warm climate, you'd have to keep re-dampening it; in a cold climate, it seems to me it'd be likely to humidify your coop real bad and court frostbite. It *is* good for heave-y horses, though.
There are no dust mites in pine shavings, you know, Suechick... and if you can find a good quality brand, they needn't be inherently dusty. Whereas DE is *unavoidably* a dusty respiratory irritant...
Good luck, have fun,
Pat