Mix the yeast, sugar, 1/2 cup water and 1/4 cup flour together in a bowl and let proof for 10 minutes. Mixture should look frothy. Add remaining flour, salt and olive oil and mix well. Turn out onto a lightly floured work surface and knead for 8-10 minutes or until dough is elastic and smooth. Alternately you can do this with the dough hook in a heavy duty mixer. Dough should feel moist and tender. If it's too stiff, add a bit more water.
Place dough in an oiled bowl and turn to coat it evenly. Cover and let rise in a warm spot in kitchen (at least 75 degrees) for 1-2 hours.