Neo, the following site has a nice little writeup about taking cuttings and also propagating bay laurel by layering. I believe what they said about maintaining high humidity is essential. I've successfully rooted cuttings during late summer outside in dappled shade (when the air was naturally humid) and also in the basement under lights, with the temperature cooler and the humidity kept higher by being surrounded by other plants.
http://www.and-sa.co.za/andopaedia/herbs/bay.php
If you're serious about making new plants, I've seen kits for air-layering plants right on the plant. And also these new gel rooting-medium pots that are supposed to be good for rooting woody stock. I haven't tried the gel pots, but they may work well.
http://www.leevalley.com/garden/page...,47236&p=46938
http://www.leevalley.com/garden/page...,47236&p=46944
If you want to try traditional air layering, you don't really need to buy anything. Simply make a careful diagonal cut 2/3s through the stem below a leaf node (where the leaves join the stem) and prop the cut open with a bit of toothpick. Wrap moist spaghnum in the cut and all around to make a nice place for roots to develop and then wrap that carefully all around with plastic so it doesn't dry out. When the interminable length of time require to form roots has passed ;-), simply cut off the new plant and pot it up.
I'm not sure either what is meant by "heel" in that context, but perhaps it's referring to the rather standard recommendation to cut below the node rather than right through the node. As far as thickness of stock to root, it's generally the thinner young branches, not the older woodier ones that root for me. (Basically, when I pruned the plant to shape it, I tucked the cuttings in moist sand instead of tossing them.) Good luck to you!