Place the Collimation Ring inside the mirror installation support ring. it's snug, so make sure it is all the way down. (gently, don't scratch your mirror)
Shine a light into the side of the eyepiece while looking into the pinhole and you should see it in the primary mirror.
Adjust the Collimation screws at the back of the telescope until the center dot of the eye piece is in the middle of the center circle of the Collimation Ring.
A great video on collimation (start at about 06:05 for the relevant bits):
smdollins
