Ok, I understand now.
The first thing to do is put the grains (how much?) in the bag. Put it in a pot with 1.5 gallons of water, and bring up to 150 degrees (more or less), but keeping under 170 degrees. Steep for 20 minutes, dunking the grain bag like a tea bag. Meanwhile, you can heat up another 1/2 gallon on the stove, up to 170. When you're done with the 20 minute steep, remove the grains. I use a big colander over the pot, and let the water drip off of it into the pot. Then, using the extra water in the other pot, pour that gently over the grains. (That step is optional, but recommended.) Then, when the bag is about done dripping, dispose of the grains in it. Don't squeeze over the pot, just let it drip.
Now, you have 2 gallons of tea colored water in your pot. Bring that to a boil. Remove from heat (otherwise your extract will burn on the bottom) and add the extract. Stir it up until completely dissolved and then put back on the burner. Bring to a boil. When it hits a roiling boil, add the 1.5 oz of bittering hops into the boil. A bag is not necessary, but you can use one if you want. Boil for 60 minutes. When there is 15 minutes left in the boil (45 minutes into the boil), add the rest of the hops. After the boil time is over, remove the pot and put it in an ice water bath to cool it as fast as possible. When it hits 80 degrees or less, put it into your primary bucket. Add cool water to it to get you to 5 gallons (or up to 5.25). Stir it up and splash to aerate it. It should be kind of foamy. When you're sure it's undre 80 degrees, pitch your yeast on the top. You can pitch it dry, or rehydrate it according to the package directions. Cover it, put on the airlock and you're all set.
Save the priming sugar for when you bottle- it's to carbonate your beer for bottling.
That's pretty much it. Let me know if you have any questions.
Lorena
Edit- Davy types WAY faster than I do!