the reason to just look at [0,1] is that if it is dense there, then, it is dense in [n,n+1] (by translation) and you know that the set Z+[tex]\sqrt{2}[/tex]Z is dense in R.
As for n[tex]\sqrt{2}[/tex] mod(1), let's clarify what it means:
[tex]\sqrt{2}[/tex] mod(1)=0.4142...=[tex]\sqrt{2}[/tex]-1
2[tex]\sqrt{2}[/tex] mod(1)=0.8284...=[tex]\sqrt{2}[/tex]-2
3[tex]\sqrt{2}[/tex] mod(1)=0.2426...=[tex]\sqrt{2}[/tex]-4
So, it is just eliminating the integer part so that the number fall between 0 and 1.
This is what I mean by "circle", it is like you have a circle with circumference 1, you start at point 0, go clockwise for[tex]\sqrt{2}[/tex] unit, you will pass the point 0 and reach 0.4142..., and go clockwise for another [tex]\sqrt{2}[/tex], you will get to 0.8284...
Now, if [tex]\sqrt{2}[/tex]Z (mod 1) is not dense in [0,1], then there are a<b, where a=m[tex]\sqrt{2}[/tex] (mod 1) and b=n[tex]\sqrt{2}[/tex] (mod 1) such that nothing between a and b is a multiple of [tex]\sqrt{2}[/tex] (mod 1). Note that [tex]\mu[/tex]=b-a>0 is irrational.
The set S={c|a<c<b} is a "forbidden region" (meaning that S is free of multiple of [tex]\sqrt{2}[/tex] (mod 1). Then, for any integer k, k[tex]\sqrt{2}[/tex]+S (mod 1) is also forbidden. Pick any integer M>1/[tex]\mu[/tex], the total length of the M+1 sets S, [tex]\sqrt{2}[/tex]+S,..., M[tex]\sqrt{2}[/tex]+S exceed 1, so, at least two of them, say [tex]S_{p}[/tex]=p[tex]\sqrt{2}[/tex]+S and [tex]S_{q}[/tex]=q[tex]\sqrt{2}[/tex]+S must intersect. If [tex]S_{p}[/tex]!=[tex]S_{q}[/tex], then a boundary point is inside a forbidden region, wlog, say upper boundary of [tex]S_{p}[/tex] is inside [tex]S_{q}[/tex], then, since that boundary point is just b+p[tex]\sqrt{2}[/tex] (mod 1), which should not be in any forbidden region, we are left with [tex]S_{p}[/tex]=[tex]S_{q}[/tex]. But this is impossible, since [tex]\sqrt{2}[/tex] is irrational. So, we have a contradiction.