Another favorite pastime was digging a tunnel under his home; he attributed the secret of his success to “visits by elves” while he worked in the tunnel: “While I’m digging in the tunnel, the elves will often come to me with solutions to my problem.”
Wikipedia cited a rather entertaining Time article as a citation for this.
I’m pretty sure he was kidding about the elves. In the article he says:
It’s a common technique when dealing with a difficult research/creative problem.
I think it gives your subconscious a chance to work on the problem without your conscious mind interfering.