You undo the two small screws and the cup that holds the jewel should come away from the plate. You will need a proper jeweling tool set as this also has the reamers in case you need to make the diameter of the hole larger, you also press the jewel with the jeweling tool using one of the different stakes that are provided out. You will need the correct type of jewel, pivot hole size and diameter of the jewel, a little larger in diameter of the whole jewel would still be alright but not overlarge. You also use the tool for pushing the new jewel in place, you have a setting depthing wheel to make sure you have the correct end shake so that the jewel hasn't been pushed too far into the plate. That block you have isn't needed for this type of work. All the necessary tools needed come in the jeweling set, you need to check what you are buying if second hand. One other thing the small press in setters are spring loaded this helps so the jewel doesn't crack when fitting. You will also need a pivot hole gauge and a jewel gauge if you buy your jewels by a varied selection. You also need to look up the types of jewels that are used in watches and the reason different ones are used.