Start off furthest away from the master cylinder I.E rear nearside wheel.
You need some tube to fit over the nipple and a clean jam jar or something of this description, pour a little new fluid into this enough to cover end of hose when placed inside.
You then need to connect the tube to the nipple and loosen the brake nipple, you will need an assistant to pump the brake pedal, unless you have a one man bleed kit I.E Gunsons eezibleed in which case you have all the above and won't need an assistant.
Whilst the assistant is pumping the pedal the fluid will be expelled into the jam jar, make sure whilst this is happening you keep the master cylinder topped up with new fluid otherwise you will end up with air being induced.
Repeat until clean fluid is seen at which point the assistant should keep there foot on pedal whilst you tighten the nipple.
Repeat the above working your way furthest to closest to the master cylinder.
There can be exceptions in the case of ABS but as the I think the XR3 has mechanical ABS so I don't think this would apply but check if in doubt.
Martin