There are several hook up diagrams in the 68 Shop Manual.
By trial and error, I have determined that the engine vacuum goes on the bottom, the line to the carb "timed vacuum" is in the middle and the distributor vacuum advance goes on top.
If you put the distributor vacuum advance in the middle as the engine gets hot it will advance the distributor and raise the idle rpm about 400 rpms.
For me that doesn't work.
The tree seems to open at around 160 water temp. Apperently it is two stage? I don't know at what temp the valve distributes vacuum to the vacuum advance. I haven't gotten hot enough yet.