Live food is not required, frozen brine and bloodworms will suffice just fine. Feed both fish that for a week or so, then in a small clear container let the female float in the breeding tank, the male should then go to build a bubble nest, and will start displaying to her and attempting to get her to follow him over to the nest. If she displays back and acts interested rather than scared, she may be ready. The only way to tell for sure is by releasing her into the tank from the container and watch what happens. If the male goes after her, bites her and such and she goes for cover, she's not ready, if she stays and takes his hits, she most likely is ready and will follow him to the nest in a little bit of time. However you need to watch them during these excursions, take her out immediately if things get too rough, and try again 6-10hrs later. It may take a couple days to get to the point where she is ready after conditioning.
Ok, now when they do spawn, as soon as the female is done laying very often the male will shortly there after tear after her and rip her up good, take her out then, but be careful of the bubble nest. For the next week to week and a half leave the male with the eggs/fry. Now chances are the male may not do things right as this would most likely be his first time spawning. The male will tend to the eggs, bubble nest, and fry for up to 2-3 weeks, but its best to remove him from the tank after 3-4 days of free swimming stage for the fry. The reason behind this is at this point he is getting exhausted tending to the fry and such for a good long time, and he is gonna need food soon (don't feed him during this time) if he doesn't get away from the fry, he may eat them just because he is gettin pretty hungry.
Now on to care of the fry, you will need to have an infusoria culture going before hand, basically what ya do add some plant matter to a jar, fish wastes, and then throw it in a sunny location, eventually it should get nice and bright green. Another trick is for the breeding tank, have the bottom half of the tank basically covered in Java moss, or at least a good portion, this will greatly increase the survival rate of the fry as numerous micro-organisms grow in the moss and will be food readily available to the fry, along with the infusoria. After a week or so of this, the fry may be ready to feed on Baby brine shrimp. A day or two ahead of this time, start your brine shrimp culture going so they will be hatched and still very small, feed small doses of them at first to make sure the fry are infact eating the BBS. Another week after this you can start with a fairly regular diet, brine, chopped up bloodworms, FINALLY crushed flakes/pellets (to subsitute the BBS you could also use Golden Pearls in the smallest diameter available) Golden pearls in the larger diameters can also be used at this point.
Now at a month to a month and a half old you should be able to start identifying the males, it will be time to start separating them out. The only practical way to do this is into gallon sized (idealy) Jars, one male for each. Make sure the room is around 80*F to maintain good water temp, and you'll need to do 80% or so water changes on EACH jar EVERY day. The females can be reared in one tank together.
This part is something you really need to consider before you do breed. You will end up with a potential of a 100-200 males out of this one spawn, and another 100-200 females. That means that many jars for one spawn, and a couple 55gal tanks for the females. Since these are your typical LFS bettas your breeding, you won't get much money at all for them, basically you will get 60 cents to $1 for each fish, if that. You will also need to rear these fish to 3-4 months of age before selling them, thats a big time and money investment for very little back. Keep this in consideration, I've bred them before and it is alot of work.
Hope this helps,
Brian