After asking around on youtube I find this to be a very interesting technique. I drew this little doodle in under 7 minutes and published it on my journal. I want to share it here since some of you were asking and had not heard of this either. It was fun to make these drawings.
Nepenthes Air Layering Tutorial by Thagirion3, on Flickr
This technique is an alternative to regular stem cuttings and rooting. Use a nepenthes that is in the vineing stage and choose a node that has a large space between leaves.
1. Cut at an angle into the node but not all the way through.
2. Add rooting hormone to the opening. Most types have fungicide which will help keep disease out. Take some long fibered sphagnum moss, wet it and ball it up. Make sure it is very moist then place it into the cut and around the stem.
3. Wrap with clear plastic and tie with twisty ties. The idea is to trick the plant into thinking the ground is higher than it is.
4. Remove plastic when roots develop.
5. Cut the set off under the roots and plant in a pot with proper medium. Bagging and hardening off is optional.
This technique seems fairly straight forward and something I am looking forward to trying out myself.