The swivel and split ring go between sinker and main line so the rig has a stop point down near the sinker.

The rig is put onto the main line after casting and having the sinker settle. The rig needs to be unclipped so the main line can be wrapped around the spiral winds. This is a little bit fiddly but get much easier with practice. You should end up with the main line running through the centre of the spiral wind without touching any wire. Re-clip the wind onto the rig again so it looks like your picture.

Important to make sure the rig has its long leg pointing toward the sinker end of the main line when the rig is set onto the main line and the wind has been clipped up to roping again.

Your bait and leader is tied to the long leg of the rig. Leader length is a personal choice, I use between half and one metre based on my bait size and beach floor conditions.

To get the rig and bait to move out keep the main line taught and drop the bait into the waters edge. Use your rod to tension and slacken (a little) the main line. You will have to see how it goes,  I use a slow pulsing style of slack and tense to move the rig and bait down the main line. 

How do you know the rig/bait is at the swivle/split ?  Depends upon your elevation above the water, the surf surge etc. in a general sense I find the feel of pumping changes and feels a little deader, can kind of feel it at the split ring.

There are some more expierenced users about these pages. So pick up a few of their expierences.

Good luck.