I'm trying to grow some shade grass, but heavy rains washed my first attempt partially away. I've read that using straw is not the best idea because the straw had weed seeds nad needs to be racked afterward. I've also read about something called green mulch, that is a combination of newspaper and other stuff that you can just add and forget. I can't seem to find it at anyplace locally, was thinking maybe its possible to make it myself by shredding newspaper and maybe adding food coloring or something? Has anyone used something similar to start grass?
What you are probably thinking about it called hydroseeding. It's typically a blend of grass seed, some kind of wood fiber/cellulose and fertilizer. It is typically used in large scale seeding jobs because of the ease of application and the moisture retention of the media. You can buy spray bottles of it at many hardware stores. It will be liquid and will probably be called a hyrdroseed solution or something like that.
I don't think that is necessary though. Most straw shouldn't have seeds in it. Don't worry too much about that. Even if there were some wheat seeds, they will look a lot like your grass, and will die out after being repeatedly mowed. Straw does not need to be raked out after, it will just decompose. I'm not a huge fan of using straw though.
What I like to do is the spread the seed on well raked/scratched up soil. Then I lightly rake the seed into the soil. Ideally, if you have a roller this would be when you use it to establish good soil to seed contact. I never use a roller though. =] Then after that I apply a very light, about a quarter inch layer of compost, which essentially functions as the straw would, but has the added benefit of organic material, microbes, better moisture retention, and nutrients for your grass. As an added benefit, you don't have to look at straw which I find ugly.
Green mulch in MY experience means an annual cover crop to be dug in when spring comes around. Newspaper decomposes after a year or two. I've tried using this for experiments on weed suppression. Not impressed. As a mulch for grass seed, I am unable to see any benefit.
You said SHADE grass. The two words are an oxymoron? Grass should never be planted in shade...when it says 'for shade' it means that particular mix of lawn grasses are more able to survive in shade than other grass mixes. It does not mean these grasses will thrive.
The worst thing people try to do is fertilize their shaded lawns. That just makes the photosynthetic growth larger when there is little sunlight with which to use to make food for the plant/grass. More stress, too much nitrogen promotes more vegetative growth but without enough light that growth is pure stress on the plant to support.
If I were you I would NOT try to grow lawn in shade. It will always be wimpy and discouraging. I would use gravel over landscape fabric or a true shade ground cover such as MONDO GRASS, Pachysandra terminalis, or Candy Tuff (Iberis). Delineate the margins with 2X4 edging or 6"X6" trenches. There are lots of beautiful ground covers that THRIVE in shade. Grass is just never going to work.
Without full sun, I would never try to grow a lawn 'crop'.