We're working on documentation that is specific to Kickstart 2. Until that is written, I recommend you read through the oAuth module's documentation...
Admittedly, it looks daunting.
I just spent the last hour trying to use this feature of Kickstart. I've learned a little bit. First, you'll want to connect your oAuth providers APIs...
Go to admin/structure/oauthconnector/list and create a new provider by using one of the presets the list, or by creating you own. You will need an App Key and a Secret Key for each provider (see list below).
URLs to apply for App Keys (as of Mar. 2012):
* Facebook: https://graph.facebook.com/
* Twitter: https://api.twitter.com/
* Google: https://code.google.com/apis/console
* LinkedIn: https://www.linkedin.com/secure/developer
* Flickr: http://www.flickr.com/services
I signed up for API keys for Google. It was tricky, but once I figured it out, I had to change the "callback URL" on Google's site to http://localhost:8888/ck2/oauth/authorized2/1
Finally, you will need to go to your permissions page and add permissions for anonymous to "Connect to [Provider]" (where provider is Google or Facebook or whoever).
That last step (adjusting permissions) is probably the step you are missing.