Where to install Shut-off valve under the kitchen sink?

There are two 1/2" copper pipes coming out of the wall which has some sort of 90 degree "extension" (not sure what its called) before the supply tubes.

Should I remove that "extension" and place the shut-off valves there, or can I just install it on top of it?

Here are some links to pictures:

http://img694.imageshack.us/img694/919/dsc02679r.jpg

http://img254.imageshack.us/img254/7843/dsc02676d.jpg

I should mention the shut off valve to the left of the pipes are for the dishwasher.

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