I'll describe what I do. I've added a link to a thread where willard3 illustrates the paper towel method.

I've started dozens of Bhut Jolokia the past few years.

Starting with properly stored fresh seed one or two years old:

1- use a soil less seed starting mix.
2- sink your seed 1/8 to 1/4 inch below surface.
3- keep soil moist - not wet. A dome or cover over your trays helps reduce watering.
4- soil temp of 85F is the sweet spot for me. I get 85% - 95% germination in 6 - 10 days. A seed heating mat and thermostat helps but is not necessary. You can sprout seed
in the 70s F but it will take longer and have a lower % germination rate.

Just my 2 cents.

Bill

Here is a link that might be useful: Paper towel link

Thank you. All advice is very helpful.

My advice would be to find one of those self watering starter kits you see at walmart or the big box stores. They have 3 main parts:

1) Seed Tray
Rows of deep starter cels a couple inches deep, and an inch or two wide. Where the (usually included) peat goes.

2) Basin
Whole seed tray sits on top of a tub of water (but not in it).

3) Wick
Usually a plastic backed sheet of felt or similar material. It wicks the water up from the basin and to the bottom of the starter cells.

Used one of this design for the first time this year, and it worked perfectly. Kept the peat (or in my case, I replaced the peat with coir) at the perfect degree of dampness. Set it in a sunny window and watch the magic happen.