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How do I attach the speaker wire to this type of setup? It has a cap that comes off and a hole in both the cap part and the part coming out of the speaker.
 

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You can use bare wire or plugs. If you're not going to be moving the speakers around much, my opinion is that bare wire is better, as there's fewer connections to be made which means fewer chances of a bad connection. (Others like bannana plugs no matter what.) If you are going to be moving the speakers around, then it's worth it to get plugs.
Plugs go in the hole with the cap, bare wire goes in the other hole in the other hole.
 
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