Anthony,
First, I would make the part out of A1/A2 or S7 tool steel. These are air hardening steels that have virtually no deformation induced during a properly applied hardening & tempering process. They are a bit pricey (about $16/lb here in the U.S.), but very easy to work with for such tasks.
Second, do all the machining (threading, etc.) to the part before hardening it. Remember that an annealed or normalized steel has a Face Centered Cubic (FCC) nominal crystal structure and a hardened steel has a Body Centered Cubic (BCC) crystal structure and, as such, a hardened part is slightly larger than the unhardened part. Depending on the steel, the shape of the part, and the quenching processed used, a hardened part may be as much as 0.5% larger than the unhardened part (though 0.2%-0.3% is more common). Make sure you have allowed for this in your machining.
Third, to check temperature for hardening, use a magnet (AlNiCo is fine) suspended on a fine piece of wire that can be brought close to the part while you are heating it. Holding the magnet at hardening temperatures will destroy it, so bring it in (close) quickly and remove it from the heated chamber. When the magnet is no longer attracted to the steel, you have reached your desired temperature. Maintain it at that temperature as closely as you can for at least 10 minutes (given the size of your part) and quench by hanging it in front of a (room temperature air) fan. McMaster-Carr's website has fairly good information on this process you can download for free.
Fourth, temper (stress relieve) pretty much as Chuck suggested. I like to use sand that has been heated to 360°F (180°C) as my thermal blanket for tempering as 360°F is the Martensite Transformation Temperature (low end) and burying the part in such a media leaves me with the greatest surface hardness with the least induced stresses.
You can probably get away with Chuck's approach (02 tool steel), there is just a slight chance it will deform during processing if your temperature changes are not evenly distributed. If (as you say) this is your first foray into heat treating, then the chances of such an oops are increased.
Also, file down the major diameter of your threads such that the crests are .020 inch (0.5 mm) wide before hardening. Otherwise you are likely to end up with ultra-hard & brittle areas in your thread.