The part that my speedo cable goes into on my tranny. I think its the vss. But there is 1 vacuum hose of some sort connected from 1 to the other of the 2 inlets on this piece. What is this for and is it suppose to be like this.

 

If its a nickel plated tube (kinda yellowish in color) and has a slot in it..

I would have to say its your VSS or speedo cable. The Vacumn hose that is next to it that should be pointing down is just a overflow tube for your tranny fluid, I think...