Getting DE wet renders it useless....always apply dry and wear a good dust mask if aerating it.For using food grade DE as a spray, Wolf Creek Ranch suggests using 1 to 2 cups of DE to 1 gallon of water in a sprayer. You need to make sure that you shake it up often, as the DE will settle to the bottom, if you don't. It's under the heading "Yard, Garden and Lanscape Applications", about half-way down the page.
I've never tried using it as a spray but use a flour sifter to spread it around and also use it as a white wash on roosts and as an ant deterrent. Check out the Food Grade DE page I put together for how and where I use it. There's also a section on where to buy it.
I wouldn't use the stuff from Lowe's as it's for insects, not chickens and it's not food grade.
Hope this helps!
Dawn