Well, here is how I've usually done it. I usually silkspan the sheeting before installing it on the ship. I do that by laying down a sheet of silkspan on top of the balsa and then brushing nitrate dope onto the silkspan and letting it dry. I usually silkspan both sides. Usually, by getting the silkspanned sheet appropriately wet it will conform to most hull structure.
in adition to what greg said, alot of people now use spray-glue for it, although i haven't had to re-sheet since i've heard of that... however i've watched friends use it and its much faster and cleaner, and just as good as dope. I'd do one side of the sheet and install that side as the inside of the hull ... then do a layer over the outside when done that overlaps the fiberglass. Do medium size stripes, not to big that its hard to conform to the hull, but not too short that you have overlaps all over your hull. Cut the bottom of the strip with little tabs (like the ads on bulletin boards that have strips with phone numbers for you to take) ... this will help when you put it on so it wraps around the bottom of the hull better... you wont get air pockets and you can position each little strip so it forms perfectly, just make sure the cuts dont go up far enough to touch the balsa or small pieces of balsa may not get sealed.