I wonder how it breaths...
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I find it hard to believe someone put all that work into it and used a rubber hose out in the open like that for the breather.
And yeah, Bill; very good question....
Looks like the intake manifold is reversed with single carb behind the fan
shroud. 
All that work and he's still running points and a condenser. Look ma, no carbs!
Ted- not that I particularly like it, but it would look a lot better without the distributor and instead using a crank fired ignition.
It probably breaths the same as any VW does, via the air intake in the back of the fan shroud And out through the bottom of the engine.
But Bim- If there's no way for the air to get into the engine compartment...
Bingo!
That is a loaf bus. They have large semi-scouped air intakes at the top of the rear quarter panels.