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The inline fuse goes within about 18" of your battery, this is so you dont fry your battery(or worse) if you get a short. As far as the distribution block typically they take one large cable in, ie your 4 guage, then it has outputs for 2 or 4 8 guage wires. The idea is to run multiple amps off the same power wire. Mount this in a secure location somewhere as you do not want the wires pulling out of it.
 

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Depends on what you are running if they really need the power. If your amp doesn't push more than 500rms or so 8 guage should be fine, but bigger is always better in my mind. If you are really planning on building up your system I would take the 4 guage kit back and buy yourself something bigger and a distribution block to match. That way you can run 4 guage to sub amps and 8 guage to speaker amps. If you share you setup specs I can help you out.
 

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^^Agreed. Also, with only 450 rms a quality 8 guage kit will do you just fine. Personally I like setting the whole system up with heavier wire and the distribution block, because 1 year down the road when you want to add more stuff (as we all do eventually) you would just have to use one of the extra ports on the distribution block.
 
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