How do I install a Nortel Cap module on my M7324 receptoinist phone
Part # nt8b41fa-03 ??? Does it require a power supply.If so how is
that installed and what cable pairs does the power supply get cross
connected to on the  cable /Jack that the m7310 phone is plugged
into??

Yes.  It uses a 24VDC power supply, such as the Viking VP324.

I usually wire everything onto a three-pair (six pin) biscuit jack.

Pins 3 & 4 (the white/blue pair) pass through from the KSU (wall jack)
to the CAP's "line" jack.

Pins 2 & 5 (the white/orange pair) connect to the power supply.  Pin 5
is +, and pin 2 is -.

You need at least a two-pair (four-pin) line cord from the biscuit
jack to the CAP or it will not work.

The M7324 plugs into the CAP's "phone" jack, using a one-pair
(two-pin) or greater line cord.

In programming, I usually designate the DN as having a CAP, though it
may work without doing so.

Take care,
-Paul