How to prove this theorem?
A finitely presented module is projective iff it is locally free (the localization at every prime ideal is free over the localized ring).
This is given right after the statement that a finitely generated projective module over a local ring is free. How to use it? If $M$ is a finitely presented projective module, then its localization $M_P$ is a module over a local ring. Is the localization again projective? If so, the statement I mentioned can be applied.
For the other direction, the hint says to use that if $S$ is flat over $R$ and $M$ is finitely presented, then there is an isomorphism $$S\otimes_R Hom_R(M,N)\to Hom_S(S\otimes_R M, S\otimes_R N)$$ More specifically, the hint is to show that for any surjection $\phi: F\to M$, the map $Hom_R(M,F)\to Hom_R(M,M)$ is also a surjection. But not only don't I see how to deduce that from the above, but also I'm not sure why this is enough to show.