Ok since you have it connected, now you need to use the "barrel adjuster" to tighten it and draw the pads in closer to the rim. The barrel adjuster is located at the part above where the bolt pinches the cable.
If you turn this clockwise, it will make the brake line looser (pads move away from rim). If you turn it counter-clockwise it will make the line tighter (pads move closer). You want to do the counter-clockwise turn.
Just so you know what is below it, there may also be a little rotating piece located right under this adjuster. This is a little device to stop the adjustment knob from moving after you have changed it. You may need to turn this clockwise to get it out the way so you can turn this knob. It will generally get in the way if you are trying to turn the barrel adjuster clockwise (loosing the cable/moving pads away).
EDIT: here is a picture that points to the little rotating piece i'm talking about. It may be a nut like in this picture or it may also be a circular disc. The "barrel adjuster" is the round thing above it.
If turning the knob all the way counter clockwise doesn't get the pads tight enough, then let me know and we do something else to reset that adjuster.



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