I use this method with varying success. Some random thoughts:
Humidity trays help to keep a reservoir of water in the bottom of the tray. It allows them to suck up water as well as raising the humidity around the plant. For more water, use screw on lids from pop or water bottles, or milk jugs, to elevate the grid. Drape the capillary matting over the humidity grid and let one end hang into the water.
Humidity grids
http://indoorgardensupplies.co...
Flower pots and cells with small drain holes will have a harder time trying to get water. Open bottom cells work the best. Pick up plants occasionally as roots will easily penetrate the fabric and become an entangled mess.
Current favorites for this method are my APS system (bought as the whole system). I have begonias germinating in them now
http://www.gardeners.com/APS-1...
Even better for larger seedlings, still open bottom
http://www.gardeners.com/Seeds...
Sharp draining potting mixes which have high perlite content don't suck up water or moisture as well. Ditto larger pots.
Karen