the pipe that is going to the air filter is right, yet wrong.

it goes to the air box (when ones fitted) and goes in where it has a sponge filter to collect oil, but this pipe goes in before the filter, so oil vapour is not sucked in to the intake system.
connecting like the picture about, although is sort of right, oil vapour is sucked directly into the intake system and over time oil forms in the system and you have oil residue on the inside of pipes etc etc

when a induction kit is fitted its better to fit a T piece and have a pipe into a sealed bottle (to collect oil, although a bailey breather has a drain pipe) and have a small breather filter on the top part of the T piece, this way it can still breath is its ment to.

the air intake pipe that the filter is connected to should have a nipple on it for the vac pipe to the boost control valve (amal valve)