The Redding Holders decrease headspace by increasing the thickness. In other words they are thicker than a standard holder by the advertised increments. The die touches the holder sooner, therefore it's not set as deep.
You don't need the Redding holders, but they do make it convenient. You can accomplish the same thing by trial and error as mentioned in my first post in this thread. You can also use feeler gauges to setup quickly if you're willing to sacrifice a piece of brass.
Set the die to touch the holder, size a piece of brass, measure the difference between it and a fired piece of brass, subtract 0.002" (give or take a thousandth if you prefer slightly tighter or slightly looser), then get a feeler gauge of that thickness, lay it on top of the shell holder, raise the ram, tighten the die down to touch the feeler gauge, and you should be darn close.
For example:
Fired case measures 2.008" to datum.
Case sized with die touching holder measures 2.000" to datum.
2.008 - 2.000 = 0.008 headspace.
So if you want 0.002 headspace, then 0.008 - 0.002 = 0.006 feeler gauge.
Hope that makes sense.