I want to remove the shower liner and replace with tile. If I remove the shower liner, then the drain will be 2 inches above the floor (where the liner used to be). How would I lay the tile to get the floor back level with the drain?

Not that simple. You're not gonna be using that same drain. Building a shower is complicated and not a good "first tile" project. You can do it, but one mistake and you're toast. Problem is you won't know until later.

Go to the main page of this site http://www.ontariotile.com/ chose the various tutorials on showers, study them a few times. Get a feel, then come back with specific questions.

Jaz