Well...the paper bag step can be tricky...depending on your mositure level. If you have it too wet before you put it into the bags it might mold with the top crimped or rolled up. Sometimes ive actually dried my buds by hanging, then bagged it and it became moist again so i had to leave the bags open for a week to ensure they're good for curing.
I hang dry in branch form, and after they're dry i cut the individual buds off the stems and cure them.
About the misting with lights on...Ive misted my plants in the morning with a 400w HPS on them...i saw no burns. I dont recommend spraying anything on them during flowering, could affect the bud.