Neps are tropical. "dormant bud sprouts"??

oh sorry, i meant dormant nodes, not dormant buds.

Nothing should be dormant on a nep. The pitchers may be nonexistent in the winter months. If you stick your finger in the soil, does it come out wet?

I'm talking about the stems that sprout off the side of the stem, there are little sprouts that grow off the side. what i am saying is that the little leaves on these stems are deformed and have alot of rusty spots on them. and i do keep the soil moist.

If you're talking about side shoots, their leaves are often deformed at first. Not sure about the rust spots. A picture would help!

yeah, thats what i was talking about. I think the rusty spots may be a type of fungus. i'll try to get some pics on.