Several problems with 1986.5 Mk3

[essial]

Transmission fluid looks good

Here's some shots to show what I'm working with (note: That run down trailer is on my neighbor's property, he used it to store boxes until a tree finally fell right into it!):




I did notice something a bit odd under the hood. A device that seems to have some sort of cotton plug, but also seems to be designed to fit a hose of some sort:

Edit: Apparently this is the "VTV" which is an emissions thing dealing with opening the throttle valve slightly more at idle causing air-fuel mixture to burn completely (I'm assuming this has to do with the fact that toyota supras are supposed to run a tad 'rich')

And lastly, I'm assuming this is the acuator:

What is it supposed to do when it 'activates'?

Sorry for the newbie questions, I'm just now getting into cars (I'm a software engineer by trade). And apparently I have the Supra/Celica Haynes manual, I'll look for the proper supra repair manual online (ebay or whatever) in a few weeks.

Thanks so much for the info thus far!