The pin simply replaces the large Colt takedown pin with a new pin that will allow the lower to accept a small pin upper. Here's a bit more info from a couple of websites.
http://www.pkfirearms.com/store/get_items.aspx?type=0&term=12The replacement pin is listed under "Offset Screw & Nut - Colt Style" and it's $5.
Next from mapartsinc. website:
http://www.mapartsinc.com/anything.asp"Skip this next paragraph if you don't have a Colt lower receiver...
Sometimes, when Colt has a bad day, they manufacture what is politely called a "large pin lower". Most would call it a reject. They come from a hole drilling placement error, so they just center it up in the right place and drill it out bigger. Instead of a proper .250" diameter hole (as our uppers have), you get a front pivot pin hole in the lower that is .312" diameter. Simple solution? Get the $5 Colt Offset Pin. It will adapt any standard USGI dimensioned upper to any Colt "large pivot pin" lower."