[Flash Walken]

Rathji made a great post up there about the process.

One thing I will say to supplement his information is, it may not seem like it, but the thinner you lay the thin-set, the better (within reason of course). Really take your time to make sure it is level, and that there isn't a tremendous amount of thin-set in the grout lines between tiles.

It's a small thing, but it can prevent a lot headaches. Like when you go to pull out the spacers, which, as it is your first time, I highly recommend.

edit: you'll also have an easier time laying Italian or Sri Lankan tile over Chinese tile, as most Chinese producers are notorious for poor quality (crooked tiles, shadows in porcelain, etc.)