Is this a smog set up?

[66 Racer]

Hey guys,

I was looking at my car the other day, it had the smog junk taken off but i was wondering about this hose coming out of the carb spacer into the valve covers on the engines right side(passenger).

I was wondering if i could plug the carb spacer up and then put a breather cap in the covers and get more performance. Will this make a bit more flow into the engine or will it basically do nothing different.

Also, do i really need the vacum line going into the distributor? I have seen some cars that dont have one. What is the difference?

I guess a quick question that hopefully you guys can save me the expense of a mechanic. Latly the car has smelt like gas inside the car. I dont have the rubber fitting that hugs the throttle linkage going into the car, but its WAY more noticable than before. It doesnt look like the actual fuel lines are leaking, i think it might be in the carb somewhere. Can you guys give me a few prcedure so that i can trouble shoot this. I did notice my intake looking a little wet in front of the car, almost looks like it is leaking fuel from inbetween the spacer/intake. The thing is that it hasnt evaporated though. My assumptions are based on the LITTLE i know about engines. lol, im in my quest of becoming a car guy with my 66, trying to learn off it, and doing as much work on it that i can possibly do w/o going to the shop.

Thanks for any help guys

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Under Construction 66 Coupe
-289 V8 - 600cfm Holley -Tri-Y Headers - Flowmaster 2.5 dual exaust, Centerforce Dual Friction