Yep that's one of two breather hoses that are prone to splitting as VW decided to make them out of a material that is not particularly resiliant to oil, hence they begin to rot and split after so many years. My lower one is ok but i had a similar problem to you with the upper y-shaped one (it comes out of the top right of the rocker cover as you look at the engine). VW parts are about £30 a pipe! There are some silicone ones on the market now which are better suited to the job and of course look a little better! I know awesome sell them aswell as a company on ebay that sell the "Autobahn 88" silicone boost hoses etc, both around £70 for the pair (cannot buy them individually).
As for turning your 007p round the wrong way, yes i have heard of people doing this but at the end of the day its not a good idea, it is designed to go the same way round as the OEM Bosch unit, but not to worry, it's not my turbo that you'll be replacing...
