hex0rz
+1y
You have the PCV connected to the right port, yes. Although, collapsing is not good. Make sure it is vacuum line, and check to make sure the PCV valve is not bad.
If you take out the valve and shake it, it should rattle. If not, replace it, or try and clear it with some carb cleaner first.
As far as the breather goes, I never thought about it technically. I use a filter on it, but now that I think about it, if you run it to the air cleaner, it will get gunky after a while so clean it, but I'm sure it would help engine performance on cooling the burn.