[dmforcier]

1) Don't treat peppers like tomatoes in this regard. They will root from farther up the stem, but aren't anxious to do so. When potting up seedlings, I'll bury the stem a little deeper (3/4"?) than it is in the cell, but not so it will root.

2) Heat mat not required, unless you keep it cold in the grow space.

3) Nonsense. They dislike over watering and will often die to tell you about it. Wilting they don't mind at all. In fact, peppers protect themselves from extreme heat by wilting (losing turgor) to drop their leaves edge-on to the sun.

Use wilting to get the rhythm of when to water. After a while you'll be able to tell when they just look thirsty.

Now, will water deprivation encourage capsaicin production? Seems to be the consensus.