Fill a 2-inch-deep nursery tray with a mixture made up of equal parts seedling compost and finely-milled peat moss. Fill the nursery tray to within 1/3-inch of the top.
Saturate the top inch of the growing mixture by liberally spritzing it with a spray bottle. Let the water seep in and moisten the growing mixture throughout its entire depth before sowing the Scotch moss seeds.
Mix the Scotch moss seeds with an equal measure of fine sand to make it easier to distribute them since they are very tiny. Sprinkle the sand and seed mixture in an even layer across the surface of the growing mixture.
Mist the Scotch moss seeds after spreading them across the growing mixture. Spritz the seeds until water begins to pool on the sand. Maintain moisture on the surface of the growing mixture at all times during germination.
Stretch plastic wrap over the nursery tray and seal it around the edges. Poke a few pinholes through the plastic to allow for evaporation while still maintaining a high level of humidity around the Scotch moss seeds.
Place the nursery tray in a cool room where temperatures stay between 55 and 65 F. at all times. Choose a spot with very bright yet diffuse light but no direct sunlight.
Watch for the first signs of germination in 10 to 20 days. Transplant 1-square-inch portions of Scotch moss into individual 4-inch starter pots once they produce a pair of mature leaves. Fill the starter pots with a mixture of two parts potting soil and one part peat moss.
Keep the Scotch moss seedlings in their starter pots under cool, bright and moist conditions. Transplant the young plants into a permanent bed once they spread to completely fill their pots. Space them four inches apart.