What does this setup do?

 

Originally the valve cover connects to the intake and it draws fumes into the intake and burns them. sometimes that can (to a small extent) cause oily residue to build up from the intake tube to the combustion chambers (it usually burns away through the normal firing cycle). The small filters are a way to get around that, and it is "fancier" than a hose connecting the two. I have something similar on my car, but mine runs to a small vented catch can then back to the intake.

 

Cool I'll do this soon

 

I recomend the catch can vs. the open filters not only because i have done it but also because the open filters bypass the hose altogether and it's not smog legal

 

I have that same filter on my valve cover, but it just looks funky on the intake.

 

yea i have mine on the vc, and plugged the one on the intake.