Ok, now the nit picking, 160-170 IS WAAAAYYYY to high for mashing (you'll be lucky if you got any conversion at all), you generally want to be 143-155 F range depending on how dextrinous you want the wort. When you are ready to add the extract, pull it off the flame and then add the extract (this helps to prevent boil overs), stir in the extract to disolve, then back onto the flame.
Bump it up to boiling (212 F generally) and add you hops then (unless you are using LME with hops added already). Boil however long you feel nessicary for the recipe. When finished boiling, cool immedietly (unless you are doing a last minute hop addition for aroma, then you want to wait about 5 minutes). The faster you get to 70 F or less, the better.
Place it in you sanatised (you never said if you sanatized....you better have sanatized...have I mentioned you should sanatize? You NEED to sanatize...like everything....all the time...) fermentor and airerate the shit out of it then add your yeast.
After it's about done fermenting, rack it into a secondary fermentor (you are going to want to get it off that yeast cake on the bottom of the fermentor). THIS is when you add your dry hopping hops. The yeast cake (along with the yeast iduring your fermentation stage) will absorb almost all of the dry hopping flavor you are looking to achive.
But, please, continue to brew, read some more, hit up the forums, and always ask questions. We love to answer them.
Aslo, be careful with the home made airlock, they clog easly if the krausin get's up in there and then your fermentor will explode