I think I have completed the first half of those instructions correctly but its just the second half of them i dont understand:
To close that lathe hole, click on 1 of the looping splines (A) hit K to break it.
Click on the other looping spline (cool.gif so it highlights towards the center,
hit DELETE to delete it (you can't break it, when you've worked with splines more you'll have a feeling for why)
Meld the 2 center cp's,
then meld the side one in.