Okay, here’s the trick. I saw Tony Danza do this on Late Night with David Letterman probably 8 years ago and have always wondered how he did it. Considering it was Tony Danza doing the trick, I figure it can’t be that hard. All he did was take the dollar bill, roll it into a tiny ball, then hold it in one palm with the other hand just above it. He then is able to make the rolled up bill levitate in between the two hands, while rotating his hands a bit around it. Letterman handed him the bill, so there was no string attached(literally). How?
I don’t know specifically how Tony Danza does it, but I suspect that the dollar bill he was levitating wasn’t the same dollar bill that Letterman gave him. For someone who’s any good at sleight of hand it would be a trivial matter to substitute a dollar bill with a string on it for the one that someone handed him. Even if you watched closely you might not see it.
One way this can be done is with a very fine thread used to support the object that is to be levitated. Transparent thread is good or anything that matches closely with what the magician is wearing so it’ll blend in visually will work if the observer isn’t too close.
Either he switcherooed the bill, or he just laid the thread in the bill before crumpling it, and just attaced it by sort of tangling it up in it. Easy, either way.
I have a better dollar bill trick. I can show you how to turn one dollar bill into fifty thousand of them! Just send me one dollar for my new booklet, titled “How to make fifty thousand people give you a dollar for a booklet.”
I love making things levitate, especially close-up. It really blows people away.
I don’t think I’ll give away the trick. I’ll just say…I.T.R. Sorry, that’s all I’m gonna say.
silent_rob: I.T.R.? 
[sub]If I promise to PayPal you fifty bucks, will you tell me the secret?[/sub] 
[sub]Canadian dollars, of course…
You can ask this question in the alt.magic.secrets newsgroup.
Sometimes human hairs are used instead of string.
How do I use newsgroups with my computer. I want to go to the magic page newsgroup.