I found this thread on the wilton site. If you read down someone talks about the technique they use to do it:
http://www.wilton.com/forums/messageview.cfm?catid=8&threadid=67484
I've made mine by rolling the fondant into a thick circle, placing the color in the center of the circle, then roll it up into a log and twist one hand in one direction and the other hand in the opposite direction. I hope that makes sense. Don't over twist or you will get the color to mixed up. After you've twisted sufficiently, flatten the fondant with your hands, then roll it out.
http://www.atecousa.net/learn/satin_ice_3.shtml
That site has a tutorial! Hope this helps!
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