I use the paper towel method mostly. Take 1 cup of distilled water with a cap approx 1-2 teaspoon give or take of 3% hydrogen peroxide. dampen the paper towel don't soak it with the solution and put the seeds in the damp paper towel. then place the towel in a ziplock bag and label it. they should be sprouted in about 2 weeks and can be carefully transplanted in labeled pots as it was written on the bag. 9 times out of ten you probably did this in elementary school or something similar with bean or sunflower seeds. I also direct sow the seeds in pots using a good potting mix or in ground if the bed is weed free. which ever way you choose be it mine or Becky's make sure they have been in the fridge for about 2 weeks minimum this is called cold stratification. Most growers will cold stratify them prior to sending or selling them. if they where given to you ask the person if they where cold stratified. if they say no or if you gathered them put the bag of seeds in the fridge, the longer the better. then you can grow them how you see fit or try different methods to find what works for you. Sorry my description isn't as detailed as Becky's but hopefully you'll get a general idea of how it works. Good luck SGB and please keep us updated.
If you haven't already be sure to scan through the plant database and check out all the daylilies out there.
http://garden.org/plants/brows... you'll have 4144 pages of viewing pleasure and can add plants to your want list to keep track of the ones you may want to someday buy.
I have seven seedlings from my first (and so far only) attempt at hybridizing. This is year two for them--am hoping for blooms next year. 
SGB 
. Nice early selection you got there.
