i added the filter at the side cover/verticle vent pipe. my verticle vent pipe is plugged so nothing gets pulled thru it. the side cover now just lets air in. all the vaccum comes out the valve cover. it is my understanding that allowing fresh filtered air into an engine is a good thing for the metal parts and the oil.
To control the amount of air and also the amount of vaccum inside the engine, i bought a small paint gun valve from HF. then i hooked up my system and ran the car. i turned the valve control to get the vacuum to no more than 1" of hg. probably should even be less but hard to get a good reading below that. when i changed the oil last time, i could hear air being pulled thru the filter while draining the oil.
after the valve was set, i watch the reading over various RPM's. the reading of 1" never changed.
if you look closely you can see the filter down in the right bottom corner of the pic. it is kind of hidden behind the frame.