Thanks for the replies. You were correct about the backwash coming out from the bottom. I simply turned off the pump, twisted the handle 90* and some water started coming out. I also see what you mean about adding a piece of pipe, because I bought a 2" backwash hose, but it will not go around the pipe that is there now, so I guess I have to put a smaller diameter pipe inside the existing one, and hopefully it will fit around that.
Is there a certain type of clamp that I should use for holding the hose on there?
By the way, since I really needed to get the filter cleaned right away, and did not want to backwash late last night without a way to divert the water, I instead opened 'er up and cleaned off all the grids, which have not been cleaned since I owned the pool. WOW, they were caked with a LOT of DE and other ugliness, but luckily they did hose off pretty easily, so I re-assembled and before adding DE the PSI was about 12 (it only went up about 1 psi after adding the DE).