I actually just did this yesterday... .
*Unplug the water-in-fuel sensor connector
*Unscrew the filter (I found that pulling the rubber tube off the sensor made this a lot easier)
*Dump all the diesel fuel from the filter all over the engine and fender (optional)
*Remove the small, "square" rubber ring from the filter mount (I had to do this by the braille method - too much stuff in the way to see it)
*Unscrew the WIF sensor from the filter and remove the O-ring from the sensor
*Coat the new O-ring with motor oil and install on the sensor
*Screw the sensor into the filter
*Coat the "square" rubber ring with oil and install on the filter mount
*Fill the filter with diesel fuel
*Coat the gasket with oil
*Dump all the diesel fuel out of the filter and onto the engine and fender while trying to screw the filter back on (optional)
*Reconnect WIF sensor connector and drain tube
*Loosen bleeder screw (10mm hex head plug on banjo fitting above filter) and use lever on feed pump to fill the filter - it took me about 20 pumps to get all the air out
*Tighten bleeder screw (not optional

)
It probably would help if you use the WIF drain to get rid of most of the fuel from the filter before you remove it - that way you only dump clean diesel all over the engine when you're putting the new filter in.
It actually was a pretty easy job - I was worried about getting air in the lines but the truck fired right up and runs fine, so I guess I did okay.
EDIT: The previous owner left a new CarQuest filter behind the seat so I used it. I'll pick up Fleetguard filters next time I'm at the local KW shop and use them from now on.