Doug, I may be wrong, but as I understand how those things work (if they're what I think they are) is that you drill the holes for you initial dowels. Slide a dowel into the freshly drilled hole, place one of those pointy little caps on it, then match it up to the piece of wood you want to join to the dowel, give the set up a tap with a mallet. When you pull the two pieces apart, there is a dimple on the piece to be drilled. Supposedly, when you make the drill and insert the dowel, it will match up both pieces of wood.
If, in fact, this is the correct way to use these, I hope you have better luck than I did.
Disclaimer, what I just posted may just be a POS and I may have my head up my butt.
Blake