1. Once you have the bottom row set, you can continue up the walls, as long as the first row is supported and won't sag. You can use anything to support the tile (spacers, scrap of wood, whatever, as long as it's not going to scratch the shower base).
2. The schluter strip is fine and looks good from what I've seen, although I've never used them in a shower. They don't attach to the wall, they are held in place by a hidden strip that is behind the tile (the thinset holds them in place). You can either use that or just caulk the corners.
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The top ten reasons to procrastinate:
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