Check YouTube for videos of Frank Vignola, who plays in a similar style, also on acoustic guitar, as Steve did. Also look for Birelli Lagrene, who sometimes plays in this style(not always, tho)

It isn't a particularly rare or unusual technique--it's the "Django" rhythm(which was actually mostly played by his brother Joseph) which is just straight eight note chords played as down strokes but occasionally sounding the upstroke for emphasis(making it sixteenths).

The Chord positions that Steve used were often the floating F barre and the floating C7or C9.

The single note/solo stuff uses the same eight note chord feel, but with the upstrokes always sounding.

There are a couple different scale fingerings commonly used in this style--

You can work from the a floating "A" fingering where (you play the three finger A chord on the second fret by barring across the D-G-B strings with your index finger, put your pinky on the low E, fifth fret and your ring finger on the A string, fourth fret, and work your scale from there, popping the pinky up to the high E string(If you can't figure out how to do this, you can probably find a bunch of videos on YouTube showing how to play this scale)



You can also work from a floating "D" fingering, which would be kind of the same, but with the D fingering on the second and third fret G-D-E strings, and the pinky starting the scale on the Fifth fret, A string.(Probably on YouTube, as well)

It is also possible to play a scale from the F barre chord, though I'm not sure whether Steve used it or not.

You can also use the "Django" scale fingerings, which are really Eddie Lang scale fingerings, but Steve, from what I gather, did not use them.

And yeah, I know it this explanation is a bit dense, but what did you expect? The hard part is actually squeezing those chords and scale fingerings while you pound out that rhythm with metronome-like precision.

It's actually relatively simple, conceptually, but it takes a bit of persistence, and perhaps some indifference to pain.

The trick is to learn to keep the hand relaxed and above strings, and only put the strings to fret for the fraction of a second that the notes are actually sounding. That is also the trick to keeping the rhythm going while playing single note leads.

You got that all, right?;-)