Yeah, live sphagnum moss is awesome as a potting media. Water retention and distribution throughout the orchid roots is fantastic. If I could get it to grow better I'd be using it exclusively. Treating it like you would dead sphagnum moss should produce good results.
Something that helps prevent root rot in the inside/bottom of the roots is to layer the bottom of the pot with river stones- it will even out the air circulation and the sphag will dry much more evenly.