I didn`t cap off ccv as it is no longer used. I have lots of vacuum now ,barely had any before. some guys out there using this set up have over 40000 miles with no issues.
connect hose to the PCV with Y pipe connection from air distributor piece (should I cap off one of the air distributor connections?) no need all your doing is cutting the hose off the y connector and installing the 5/8 hose from catch, pcv (Purolator PV1050
-O'Reilly Auto/Microguard PCV345
-FRAM FV345 & FV345DP
-BWD Auto PCV358
-Napa Item MPF39358 or CRB29358) to it. ( I used the fram fv345 from maslack, $8.00)
this set up is really simple. (too simple) .
the only thing I don`t know about this set up is if it would pass emissions test. I live in northern ont so we don`t have to worry about emissions up here. I would think it would pass as this is a non vented catch can.
and for all your other questions your right on.
I used heater hose and from vacuum on the 5/8 hose it would collapse so I went to home depot and bought some 3/8 id x 1/2 od solid plastic white hose and fit it inside the heater hose so there is know way it can collapse now with vacuum pressure. (I wanted to keep my hoses all black for cosmetic reasons. and rubber hoses are easier to go over the plastic fittings like the y connector which you don`t want to break and also the 90 dergree connector you have to cut so its straight to install the 3/4" hose to it from catch can.)
she is running smooth meaning no change in the way the engine ran before with the stock ccv .

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2003 bmw x5 3.0i ,219000km build date 2003-08-18