Leon's picture is for a classic Bullet, not applicable to the AVL engines. What the picture shows is an aftermarket accessory for the traditional Bullet engine which takes the oil feed to the rockers directly from the big-end's oil feed rather than the scavenge/return oil supply, via some jazzy stainless braided hose. This was, I believe, first used by Swiss motorcycle genius Fritz Egli when developing his Indian Bullet Tuning packages back in the 1990's and something similar is still available if from Jochen Sommer in Germany if anyone really wants one. Personally I think it's a solution in search of a problem.
http://www.royal-enfield.de/index.php?m ... ng&sub=t05
This kit is no use for the AVL/Electra-X engine however, as there's nowhere on the AVL timing cover to take the supply from, unlike the older Bullet which has the handy screw-in oil feed plug. You could have one modified, but why bother? The aforementioned gear pumps put plenty of oil up to the rockers.
Getting back to StogieRob's picture, we can't actually see what the upper hose off the oil cooler connects to, but I suspect the only way it would work would be by reconnecting with the upper part of the original rocker feed pipe. Logic would dictate this, which I assume the previous owner of this bike understood. Once this thing has been removed you can re-fit the horn in its original position, onto the thearded boss welded onto the left hand side of the frame's front downtube (on the second picture, which I didn't post. Where's papasmurf when you need him? ;o) )
Having an AVL Classic shouldn't be a problem with parts lists/manuals if you remember this: the engine, primary drive side and the electrics are the same as the Electra-X, the rest of the bike is mechanically identical to the Sixty-5 (or the 5 speed Bullet Deluxe, another model we were never offered). The Military designation is down to nothing more than the army green paint-job.
A.