Scrub the bricks with a masonry cleaner to remove soot and grease. Let dry completely.
Mix up a batch of thin-set mortar per package directions. Exactly how much water you add depends on the type of thin-set mortar you're using. It should be the consistency of oatmeal.
Spread a layer of thin-set on the bricks with the trowel, starting at the bottom and working your way up. Do the hearth last if you'll be standing on it to reach the top of the fireplace. The layer should be thick enough to cover the bricks and the grout lines between the bricks. Smooth out any ridges or bumps with the trowel as you go. Let dry for 24 hours.
Measure the outline of the opening for the firebox. Cut the scrap wood so it forms a support that is 1/4 inch lower than the height of the firebox. The support will look like three sides of a rectangle or square, depending on the firebox shape. Nail the support together. Set the support inside the firebox so the two ends are on the hearth and the top is right below the top of the firebox.
Arrange the design of the tiles so a row of tiles will be horizontal with the opening of the firebox and 1/4 inch below it. It's best to use different size tiles so any small error is hidden by the different sizes and colors. A decorative layer of tile at the level of the mantel works well to distract from imperfections.
Start at the bottom of the fireplace. Butter the back of the tile with a 1/4 inch of thin-set. Push it into place using the hearth as its support and the edge of the firebox as a guide. If you are using tile spacers to leave room for a grout line between the tiles, put the spacer next to the tile. Butter the back of the next tile and line it up next to the first tile or next to the spacer. Continue until the row is complete.
Start the next row using the same technique. Check the top of the row to make sure it's level. If it's not, adjust the tiles while the thin-set is still movable. You may have to push a few tiles up or tamp them down a bit.
Continue until you reach the support over the cutout for the fire box. Rest the edges of the tile on the support. Keep the support in place until the tiling has been completed. Each tile rests on the tiles below it with the exception of the tiles around the fire box. They rest on the support.
Continue the tiling until you reach the top of the fireplace. Cut the tiles to fit over the supports of the mantel. Tile the mantel if it's part of the brick. Don't tile over it if it's removable. Replace it with glass, wooden shelving or a custom-made wood mantel.
Remove the tile spacers. Clean the tile with the tile cleaner to remove any thin-set. Let dry 24 hours. Seal the tile per package directions.
Mix up the grout as the label directs. Push the grout into the grout lines. Sponge off excess with a barely damp sponge. When grout has dried for several hours, remove excess grout from the surface of the tiles with the sponge wrung out.