Dear sicnug (cool name by the way), a capo is a piece of hardware you'll have to buy at the local music store. They're real cheap--less than $10 I think. It's just a clip-type thing that you attach to whatever fret indicated by yer instructions (in this case, 2nd), and then you play away like normal, treating the capo like the end of the neck. Put it right in the middle of the fret. It changes the key because you're basically playing the chords a few frets higher than usual. The neat thing is, you can put the capo wherever you want and experiment. Heck, put the thing up on the 10th fret and go crazy! Sometimes just putting it on strings 1-5 gives a nice effect, too. Hope this helps.