Bismillah
Al-jawab billahi at-taufeeq (the answer with Allah's guidance)
1) According to the Hanafi Madhab, only at the first Rakah (unit) lift the two hands upto the earlobes in such a manner that both palms face towards the Qibla. Then say Allahu Akbar, this is called Takbeer Tahrimah.
Uthmaan Bin Abi Shaibah - Wakee� - Sufyaan - Aasim (Ibn Kulaib) - Abdur Rahmaan Bin Aswad - Alqamah said: Abdullah Bin Mas�ood (radhiyallahu anhu) said:
�Should I not perform with you the Salaat of Rasulullah (Sall Allahu alaihi wa Aalihi wa Sallim)?�
Alqamah said: �Then he (Ibn Mas�ood) performed Salaat and he did not raise his hands except once.�
(Abu Dawood)
To do the Takbeer Tahrimah is Fardh (compulsory) in Salah, if however a Fardh act is missed then the whole Salah will need to be repeated.
2) As for Tashahhud, this is done in the second, third and fourth Rak'ah of any Salah.
To pray Tashahhud is Wajib (necessary) in Salah, if however a Wajib act is missed then Sajdah Sahwa will need to be done.
Please read Talimul Haq for the detailed explanation of performing Salah, or you can visit this link:
http://www.inter-islam.org/Actions/Part7.htmlAnd Only Allah Ta'ala Knows Best.
