That is completely wrong. Normally that side is the tip in vacuum switch for timing. It is totally unrelated to EGR. Here's what should happen.
1. Unhook that vacuum line at the switch on the firewall. It should be running to the carb, and the port should only supply vacuum when the throttle is opened. Not sure where that is on a qjet.
2. Check for any other open lines that would cause a vacuum leak.
3. If you are running a 700r4, there should be a switch that looks almost like the one you are taking about. But it should be at the 10 o clock position above the brake booster. In the first pic, to the left of the egr, there are two wires. Yellow and green. That is the wires for the egr bleed solenoid which is tied into the 700r4 overdrive wiring. Follow the green wire until you come to another connector. Note it should be blue and green wires. Follow that until it comes to a connector that will not be hooked to anything. That is supposed to be hooked into the overdrive vacuum switch.
4. If the green wire leads up to the switch that you have pointed out, then some one had moved it. If that is the case, you need to run a vacuum line from a full vacuum port on the carb. This would also apply if you found another switch laying in the engine compartment from step 3.
5. If you dont have a 700r4, only do step 1 and 2.