'66, the hose going from the spacer to the valve cover is for the PCV valve (positive crankcase ventilation valve). This needs to stay intact for emission purposes and won't cost you any power. You do need to change the PCV valve occasionally (25,000 miles?). Make sure the hose and connections are good as you don't want any vacuum leaks.
The wetness under the front of the carb is from (1.) the accelerator pump leaking or (2.) the float bowl leaking. Either of these accounts for you smelling gas. It evaporates easily from the hot intake manifold and filters into passenger compartment where you smell it.
If your car has a vacuum line to the distributor, then you need to keep it. Make sure the line and connections are in good shape. Again, you don't want any vacuum leaks. Some performance distributors have only centrifugal advance (my Mallory Unilite is one of these). That costs some mileage as you don't get early vacuum advance when you put your foot in it at lower RPM. If I replace that distributor, I'll definitely get vacuum advance.
Hope this helps with the questions a little.
Rev
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'66 Coupe, 306, 300 HP, C-4, 13.97 e.t., 100.3 mph
1/4 mi.
[This message has been edited by Rev (edited 10-08-2001).]
[This message has been edited by Rev (edited 10-08-2001).]
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