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If you have the engine out and can pull the rack, I highly recommend pulling the rack, taking it apart, and yanking out the piston that the power steering fluid requires to work. By doing so, you reduce friction AND you can then seal/cap the entire system.
By looping the lines with the piston in place, you basically "pump" air from one chamber that is getting smaller and has the pressure into the other chamber that has vacuum from expanding. If you leave them open, it pushes/pulls into the air. If you don't filter this, it WILL suck in moisture and other contaminants, vastly reducing life of the rack. A simple loop should be very simple, just make sure you are doing them at the rack and not the valve body (located at the pinion). The valve body lines you can cap (should be 4 of them there).
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