For this job, you should only really need two layers. For work such as drives (or other surfaces which will be supporting heavy objects) you should use thick slabs and a base of concrete - consult an expert for more details if you're in doubt.
1. Firstly, mark out the area of the paving with sand, ensuring that the ground is level and making sure that you have left 5cm or so around each edge to make handling of the slabs much more easy.
2. You should dig to around 3.5-5cm below the depth of the top of the stones - generally around 90mm. Remove all weeds and debris, making the bottom of the dig as level as possible.
3. Depending on how deep you dug compared to the width of the stones, pour in coarse grit sand, mixed with dry cement to the right level, which will leave the stones flat and level. Don't use building sand - it's too soft. A 10:1 mix of sand/cement is fine as this will stiffen the mix suitably. Compact this bed by trampling or using a plate compactor. As a rule one tonne of mix will cover 10-12 square metres of ground at 5cm thick.
4. Use a taut string from one side of the area to the other to lay the edges of the slabs, and a spirit level to determine their flatness. When laying the slabs, use a trowel to flatten the area that you'll be laying it onto, and slightly ripple the surface with a trowel to a depth of about 1cm - this will allow the stone to "bed down". Take care to get this right and flat first time round, so that you don't have to re-adjust.
5. Now it's time to lay the stones. Smaller ones can be lifted into place but larger stones should be carefully tipped from an already-paved or solid place. Whilst doing this, if you squat behind the flag rather than standing over it, you reduce the risk of putting too much strain on your lower back. Be careful and if in doubt, ask someone else to help you.
6. Use a "maul" - a big, rubber-headed hammer - to help you align the stone, and tap lightly on the corner of the stone to make it flush with the others. When you're satisfied, stand on the flag and check that it doesn't rock around - that the bed is good and the stone is flush with the ground. Check the surface with a spirit level (it should be draining away from the house and towards a suitable spot, so perhaps on a slight incline).
7. If the stone is too high or low, you'll need to lift it, add more bedding or remove some, and put it back. There's no need to add mortar joints as long as the stones are flush at the edges. Be sure not to lay stones higher than the damp-proofing layer on a wall, if laying them next to a house.