I've cut out the decals iI am going to apply I've got the paper thing how do apply them? I know that I need to use some water but I dont know anything else about applying decals. Any help would be appreciated. Please and thank you.

Soak them in warm water for about half a minute, this loosens them up. Then you simply slide them off the backing onto your model, with a slightly damp finger or brush, whichever you find easiest. There are some products you can get to soften the decals or remove air bubbles from underneath them, but I don't know any of these by name. I'm sure someone else will.

Dave

After looking at some refs, Micro-sol/micro-set, Future, or Klear are the sort of things you want for decal softening. This page should help.

Most of us spray future on the kit first. this smoothes out the texture so the decal sticks better and the airpockets dont show. get a bottle of Micro-sol and micro-set. The sol presoftens the decal as you gently lay it on the surface. then a small application of the setting solution. Give it a day or so the apply your weathering or a dullcoat (flat finish). This will help make your decals not look like decals

To sum up the whole process.

First, apply a coat of gloss (or future) to either the decal area, or the whole model. This is critical. The smoother the finish, the better the decal will adhere and the less chance of silvering. Silvering is caused by tiny air bubbles trapped under the decal and light refracting off of them.

Once dry, dip the decal in warm water and allow the water to loosen the decal. Slide it into position on the model. Let the decal dry for at least a half hour.

Apply a dullcote over the decal to remove the glossy finish and to seal the decal to the model. This will keep the decal from discoloring, peeling off, and blend it into the background.

Once the dulcote is dry, you can weather the model as you see fit.

Decal Sol and Decal Set solutions are not usually needed if you follow the above method. You still may need them if you are applying decals over rough surfaces such as rivet or bolt details though.

Well, no one's mentioned this, so I'll chime in:
The old school way was to trim the decal as close as possible. These days, especially with better decals, it's better to leave the carriers (the thin transparent film around each decal) on, so that it doesn't leave a sudden ridge around the edge of the decal. Even after several cots of dull-cote this is hard to get rid of. It doesn't always show up until you weather, and then it's very obvious.
On older decals with a heavier carrier film, you can even lightly sand them with ultra fine paper to thin them a bit. (Before applying them.)