Restless,
Ok, here's what you need. I found the hugger instructions (the attached pdf) and I took you some pics (the pics in the instructions didn't come out too well). See the bolt that holds the rear brake line in place in the first 2 pics below? That bolt gets removed and the longer bolt that should have come with your hugger gets put in it's place (see the parts list in the instructions for info). A nyloc nut gets screwed onto the end of this bolt, after you put the bracket on, but you don't tighten it up all the way, just enough to keep the hugger bracket from rotating.
You don't use any of the bolts on the caliper for this.
It helps to get the hugger in place before you tighten up anything. That way you can position the hugger to your liking and then tighten everything down.