Over the last couple of years I've been thinking about setting up an NPS tank and I figured that I'd go the live food route. A big benefit of the live food route (aside from the long-term cost savings) is that you won't foul up your water as bad by adding live organisms as you would by adding non-living food.
I don't know if you'd be able to fully support your tank on just live food (I read an article a while back and, if I recall properly, a lot of nps corals and gorgonians get much of their energy/nutrition from detritus), but you would be able to take a serious dent out of the monthly cost of feeding the tank if you were to grow your plankton and rotifers (which can be readily done).
I found the below articles on plankton and rotifer cultivation:
http://www.advancedaquarist.com/issues/aug2002/breeder.htm
http://www.advancedaquarist.com/issues/sept2002/breeder.htm
From what I read, you'd want to cultivate a couple of different varieties of plankton (mainly Nannochloropsis oculata, Chaetocerous gracilis, and Isochrysis galbana). Each of these different planktons have different nutritional profiles and, if you are to breed rotifers, they are only as nutritious as what they eat. I haven't done the math on how big of a culture container you'd need for your plankton, but I'd immagine you could do it easily with a 3-6 liter continious system to support a 100 gallon NPS tank.
I did do the math for how big of a rotifer culture container it'd take to support a 100 gallon NPS tank on a continuous system and it works out to be about 3.5 liters (although I'd go closer to 6 liters just for some fudge-room). That math was done assuming you'd be growing Brachionus plicatilis.
So I'd start by setting up four culture containers. One for each strain of plankton organism and another for the one strain of rotifer I planned on growing.
Just to be clear, I haven't actually done this yet. I've only been doing a bunch of reading so far!!!