First you need to pasteurize the wood chips. To do this you can put them in a storage bin. Then, you fill it up with hot water from the tap. Don't drown the wood chips in water-- just get them wet enough. Then, you're going to add a few gallons of boiling water. Cover up the container and leave overnight.
For the bucket, you take the drill bit and drill holes around the sides and bottoms. As an estimate, five holes going down each column should be good. The holes on the bottom are for drainage. The holes around the sides are for the fruiting bodies of the mushrooms. It's amazing how many big mushrooms you can get out of those tiny holes.
Once your wood chips are done, you can add them to the bucket. When adding them, however, you alternate in a layer cake fashion between the spores and wood chips. If your wood chips are leaking water, just squeeze them out. Also, make sure you pack down the material in your bucket. Make sure the last layer is wood chips.
Cover up your bucket and wait for it to colonize. When it's colonized you should see mycelium growing. Mycelium, for those who don't know, are like the "roots" of the mushrooms. It looks like fibrous, moldy roots and everything should be like a big block at it's peak. It may take a few weeks to fully colonize, but once that happens you can bring it outside (if you want to keep it outside) to fruit.
Make sure the fruiting bodies stay moist. They don't like too much sun or wind. They need humidity to make sure they don't dry out. You can mist them with water to keep moist. Once you cut off a group to harvest, eventually, more mushrooms will grow in its place.
The last thing you need is to enjoy the taste!