Re-install lion using Apple Thumb drive

I am having some problems with the sleep fucntion and want to consider a re-install of Lion as a way to correct the problem.
I have a MacBook Pro, bought June 2011.  I upgraded from Snow Leopard using the Apple Thumb drive.
Pretty much all advice for installing and re-installing Lion refers either to the downloaded version for the App Store or using a recovery file produced by the user after installation.
I am just wanting straighforward guidance on the process for doing a re-install of Lion using the Thumb drive or whatever process is proper.
I have a Time Machine set up with a Time Capsule.  Not really sure if this could end up causing me more troubles using the stroed data/files.  It may be those which are causing the troubles.
If necessary,I am fully prepared to use an external drive to capture my files (photos, music and iWork stuff) and then use these as I need to for restoring data.
Bottom line: how do I do a re-install of Lion using a MBP with an upgrade to Lion from Snow Leopard from a thumb drive from Apple?

Just plug in the thimb drive and reboot the unit. After you hear the startup sound press and hold the "Options" key. You willl get a one time boot screen where you can select the drive to boot to. Select the USB thumb drive.

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