I have never had any experience with hydraulic disc brakes but I figured...how complicated could it be.
So I have taken out the worn out pads, no problem. I have purchased a new pair and now I cant figure out how to install them (idiot!).

I have consulted the manual and it said to remove the mineral oil cover, push the pistons back and the just install the bads with that metal bracket in the middle. The problem is that the pads only fit if the brake surfaces are touching, so there is literally NO space between the brake pads...and thats with the pistons pushed all the way back.

The brake pads are shimano XTR and they are compatible with LX M-585 so I doubt that this is the problem. I believe it might be my gross incompetence.

If anyone has tips on how to proceed without visiting the LBS it would be much appreciated.