Jim,
ADY has to be rehydrated before using. For traditional baking methods, there are two ways that are generally recommended by yeast producers for doing this. The first is to rehydrate the ADY in warm water, at around 105 degrees F, for about 10 minutes, before adding it to the rest of the formula water (which generally should be cooler) or to the rest of the ingredients in the mixer bowl. The second method is to mix the ADY with half of the flour and other dry ingredients, heat the liquids (usually water) to 120-130 degrees F, and add to the dry ingredients. ADY is very sensitive to water temperature so you don't want to put it directly into water at other than about 105 degrees F. Some people put the ADY in with flour about 15 minutes before using to allow the moisture in the flour to start the rehydration process.
Peter
