its actually supposed to connect onto the exhaust manifold. its to get hot air into the inlet to help with cold starts. basicly the manifold heats up quicker than any point on the engine and so putting warm air into the inlet helps the engine idle untill its warmed up a bit more. however its completly pointless and makes the car slower and idle more roughly once it has warmed.
my advice, take the bloody pipe off and block the hole.
the less hot air getting into the inlet, the better! the car will be able to breathe better and will rev more smoothly. its a completly pointless pipe and the car benefits more with it removed. you probably wont notice a power increase but you should notice smoother engine responce etc.
also, direct the other pipe directly behind the front grill and cut a hole in the plastic panel behind the front grill to allow some cold air through from the grill rather than directing it all down the the rad. put the pipe behind this hole and ital help give the car more power at higher speeds, motorways to be more specific.