1. I flashed my phone using the Flash tool and used the VS98039A kdz, just because i didn't want to wait for my phone to go through the numerous OTA updates it would normally do if i were to factory reset, plus I wanted to wipe it completely and start fresh. You can find the steps here: http://goo.gl/aSBTaL
You can get the kdz from here: http://goo.gl/DKdgYr
2. Once you have Lollipop up and running you need to root. This process is really easy just follow the steps here: http://goo.gl/MVGhj6
3. Then once you are rooted and running Lollipop you need to put a copy of the hotspot hack on your phone's memory. I chose to put it in the downloads folder, just because it is easy to remember. Then thanks to xdabbeb and his hotspot hack this needs to be flashed in recovery. You can find the file that needs to be flashed here: http://goo.gl/Uxz1d3
I have heard of people running into problems trying to get into recovery by holding the down and power button method (standard method) they are getting a security error. I have found by installing either "Reboot" or "Rom Toolbox" (which i prefer) you can boot into recovery from within the app, which I have had no issues with.
This is the exact method I used and worked without a hitch on my first try. If you have any questions or issues go ahead and leave me a post and i'll try my best to help but I am like most of you just keep trying different things until something works. I might have an answer just because I have already dealt with it. Might wanna check out the pages I referenced for a answer first, as it might already be addressed in the post. XDA-Developers I have found is a great place to find answers and idea's for anything android.
Hope it helps.
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