Till the area to six inches deep with a rototiller.
Incorporate a large amount of organic matter, such as compost, onto the area to be seeded with a shovel. Till it into the soil with a hand tiller or rototiller.
Run a lawn roller over the compost to settle the soil. Loosen the top inch or two with a garden rake. Roll it once more then loosen the top half-inch with the rake. When you step on the soil, your footprint should be no deeper than a half-inch.
Apply grass seed with a spreader on a calm day; any wind will blow seed all over the place. A seeder will spread seed evenly, which is imperative if you want a good-looking lawn. Apply seed densely in two passes: east to west then north to south with an up-and-down motion. Fill in any spots that look sparsely seeded.
Cover the seeded area with a thin layer of topsoil (about a half-inch), using a shovel. Roll the entire area again, one north-south pass and one east-west pass. Northscaping.com recommends pulling the roller behind you to cover your tracks.
Water the entire surface with a garden hose. Water very lightly with a fine spray attachment for the garden hose. Strong jets of water are going to ruin your work and make craters in the new lawn. This light watering will promote germination and secure the seed in the soil so it isn't blown away.