As for preparation, this was a job of "make it blue, leave the marks" so I just used Scotch Brite abrasive sheet, Grade A-VFN to remove what was left of the original blue and to blend the fine marks, then rinsed it all with alcohol.
It is helpful to have one of those little squirt bottles to dispense the blue.
For the barrel:
1) wet a pad of soft , absorbent cloth (I use those blue shop paper towels) with the blue and apply with long,even strokes so as to wet the entire barrel.
Don't worry about overlaps, that doesn't seem to be an issue with this product.
2) wipe dry.
3) allow to sit for a few minutes and then card off the remaining film with steel wool. I prefer '0000" but have used '00' with good results. You can lean on the '0000' wool all you want and the bluing ain't coming off but be a little more cautious with the '00'.
4) repeat steps 1 thru 3 a couple more times.
For the rest of the gun, except the lever if it is colour case hardened:
1) to start, follow the instructions as for the barrel.
2) prepare a new application pad and a larger pad which will serve as a drier.
3) put a drop or two of the blue on the application pad and take up that pad in one hand and the drying pad in the other and, with the gun held securely in a vise, begin the dance. ( it is important the pad be just barely damp. If it is too wet, this procedure will not work)
Lightly pass the bluing pad over the receiver and be following it immediately with the drying pad. You will see that you are laying on the merest of film on each pass but it does accumulate and eventually you begin to realize that it is gradually darkening as you work. Work your way over the entire receiver and every so often, go over it with the steel wool and check your progress.
All this goes faster than it sounds. It's also that kind of mindless chore, like cutting grass, that can provide a relaxing respite from the tensions of the day. Brownell's provides pretty good instructions free of charge and other tips are available in the Gunsmith Kinks series.
After you are satisfied, oil her up and go play.