taken delivery of my new forks today, but im unsure which way to install this bit and how?
I assume it goes this way up and to insert from the bottom of the fork but thought it was best to check,
and just to double check on this again I want to cut the steerer tube a few millimeters below the top of the stem?
heres a sneek peek of it will look like finished (excuse the mess)
No!! That goes in from the top and its' the sort of taper down the way! Don't put it up from the bottom.
It's a star fangled nut.
It goes into the top of the steerer tube, and then the top cap gets screwed into it in order to pre-load the headset.
Now that's the important bit out the way. It goes the other way up, i.e. taper into the top of the forks. Then it gets hammered down a bit. There's a tool for that but I always just use a hammer.
Put shed loads of spacers on and ride the fork without cutting the steerer, that way you can see how high you like it and if you hate the fork you haven't cut it at all.
Might be worth having a word with the LBS?
throw it away and get one of these
And stop taking advice from that cat. It knows **** all about anything apart from fish 
This is the proper way, I suggest you bookmark the site, you'll be needing it.
http://www.parktool.com/blog/repair-help/star-fangled-nut-installation
you can achieve the same result with a hammer and long bolt but forks are expensive so I'd suggest the proper tool.
superstarcomponents sell one for about a tenner.
A bike shop will also do it for about a tenner in my experience, they'll also cut the steerer. You should probably buy a stack of spacers though until you work out you positioning. You can't uncut a steerer very easily
How are you cutting it? If you are planning on cutting with a hacksaw then stop and go get it cut properly by someone with some proper cutters and guide or you'll end up with a wonky cut. They will stick the star nut in the right place for you. It's easy to get it wrong, and replacement steerers are not cheap!
Sorry to say it, but you don't sound confident. You could ask your lbs to show you as they do it so you will know for the future? As I said, easy (and expensive) to get it wrong...
It's one of those jobs where having the proper tools makes it really easy, not having them makes it a potch. just take it to the LBS and shell out afew ££££'s (£15 or so probably) save your self the bother.
Im cutting it with a pipe cutter and happy with the positoning of the stock fork so will leave it the same length.
The trouble with my LBS is that its not local. if it was then i would go there tomorrow but its a 50 mile round trip, there is one nearer but i trust the cat more then them.
Thanks for the tips, ill speak to a mate who knows a bit more about this stuff then me.
and heres the pic i was supposed to add on the first post
The proper tool is the way to do it. If it where my shop and someone came in wanting the nut fitted I would install it and not bother charging as the tool makes it a 30 second job. I am sure many LBS's would not bother charging for this either.
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