I just got an LX rear mech and this thing feels so nice, Its just I'm still using my old crappy 7spd Altus Drivetrain, But the Origional rear mech has just had it really shall I fit the LX now anyway?

BTW I have also managed to get my hands on some flak Jacket cables and I was wondering, Is that cable end with the pipe in it to go in the Noodle?

You can fit the mech now, even though it's 9spd. It's the shifter that dictates the movement of the rear mech

Alex IIRC you get two types of furell's with the kit one tupe is the one that fits into your shifter and mech adjusters the other one has a pipe on it as yu say this is to fit inside the red pipe the idea being that you..
1 Slot a noodle into both guides where normally the cable (inner) is exposed
2 Cut the red thin tubing to that length so it fits snugly against the frame guide
3 cut outer to size
4 thread together

the red pipe stops sh1t being caried into the outer by sealing the outer form the elements if you want my advice put a blob of silicone sealant on the black furell pipe before seating the red outer over it to furter resist dirt ingress

he meant to say 'ferrule' ;-)