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That is in fact the "shell" that you need to remove. For mine I used a hacksaw. I put the blade inside the shell and re-tightened it on the saw. I then carefully cut through it on two opposite sides and popped each side out with a screwdriver. I just went through this like 3 months ago. After the sleeve is out the new bushings slide in easily. Remember to grease the heck out of every bushing. The little tube of lube they give you is a joke. I went through half a stick of waterproof wheelbearing grease on my bushing kit.
Ive done it before and went to the parts store and bought a tube of marine grease.
Any good water proof grease is good..be sure to wear latex gloves...its a PITA to wash off!