Remove your magazine, insert the "hook" of the tool in the well and squeeze the handguard with the forked portion, pulling down using the mag well as your fulcrum.
Really don't absolutely need the tool, as you can grip the delta ring and pull it toward the receiver and IF you have the handstrength to hold the delta ring down, you can use your other hand to pull the top of the handguard free. The tool is like having a third hand to grip and hold down the delta ring. (The delta ring is the sprung part that holds the bottom of the handguard in place, closest to the receiver). Hope that makes sense to you.
You absolutely do NOT remove your front sight. The top of the handguard (by top , I mean the part nearest the front sight) is merely anchored there and will drop down and away when the Delta ring is compressed allowing the handguard to move away from the front sight, toward the receiver and delta ring.
Instructions here..........................
http://cheaperthandirt.com/blog/?p=343