No I'm not laughing - that would not be nice.
The two 3 position connectors at the end of the board are for the Simple Serial Bus (SSB). These two connectors should be marked X1 and X3. There also should be markings on the board showing what each connection is.
You can think of these as "SSB IN" and "SSB OUT" although both are the same. Both are connected together on the board and simply provide an easy way to connect the SSB wiring to the board and then on to another board.
The two 8 position connectors on the sides of the board, at the other end, are for the coils. Each coil uses two positions, four coils per connector.
See the diagram in the manual linked below.
The single 10 position connector in the middle of the board is for connecting the 8 "spare" inputs/outputs (logic level) to another RR-CirKits "satellite" board, like the BOD-8. For now you want be using this connection.
http://www.rr-cirkits.com/manuals/WatchMan-manual-a.pdf
Do you have the most recent version of JMRI installed? You will want to use DecoderPro 3 for setting up the Watchman boards.
The first think you will need to do is program each board with a unique address. This is covered in the manual linked above. It is usually only done once per board. This is covered in section 2.0 of the manual.
With their other products I have carefully followed each step and all has been fine. The only time I had a problem was when I didn't read ALL of the steps and missed one.
I setup all of my units on the workbench first and then installed them one by one on my layout BUT I purchased an extra LocoBuffer unit and a SBS Gateway unit to keep at my workbench.
Since I doubt you will be using the other 8 inputs/outputs they can be configured at a later time.
So read the document, look at the units, identify what connects where and see how it goes.
Then ask whatever questions arise. I'll be here for the reset of the day.