The opening in the air cleaner you describe is the dust/water drain and should have a rubber fitting that lets dust/water out but nothing can get back in because of the "duckbill" feature of the rubber. If it is missing get a new one as this negates the effect of the snorkel. There is no way that air can bypass the filters by coming in this hole, it will suck air/dust/water but everything still has to go through the 2 filters.
With the breather, there has been quite a few threads on here about it. Do a search on 4BD1 breather and you should find them. It is normal to have a fair bit of breathing in these engines especially at idle. At those K's it is hardly run in! What it needs is some hard work. Get it out on the highway and give it to it.
Any pics?
What gearbox etc are you running behind it?
Cheers......Brian
1985 110 V8 County
1998 110 Perentie GS Cargo 6X6 ARN 202516 (Brutus)
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