The hose you're holding is going into the top of your manifold, between the jugs. You're going to completely remove that hose, and then use the rubber plug (in the kit) to cap off the hole in the manifold.
Once you remove both of the hoses, (going to the middle of the jugs and terminating in elbow joints), you will be left with the wonderful task of removing those elbow joints from the jugs. They are slip-fit and pull straight out.
Get some threaded rod that will fit a pair of vise grips. Make your own slide hammer, or else rent one from Auto Zone, and use it on the threaded stock.
Here's a pic of one that I made with plumbing fittings, but I ended up using the heavier slide from the Auto Zone slide hammer that I rented:
The two billet aluminum plugs will get tapped into the holes you will have in your jugs, once the elbow fittings are removed.
(Also, in my photo above, you can see my rectifier to the left. That has to go back on the bike and get plugged back in.)
