Basically, Phil Galfond is saying that his idea is not perfect, but with a little more thought he could solve the small problem areas (kinks). Kind of like "debugging" an idea.
The image of "work out the kinks" is when you pick up a rope or cable that hasn't been wound up properly. It will have twists and bends (kinks), stopping it from lying straight. With a little untwisting, you work the kinks out of the rope or cable.