you have some work to do! The tube hanging from the bottom of the carb, is your drain tube, you need to stick a screw in it, or simply attach it to the clap bolt on your rear driveshaft.
There should be 2 vent tubes tee'd into one on the top of your carb, that line then ends at the plastic thingy in front of your gas tank, extend this line to your handelbar or something.
You might want to rejet to gain the maxium performance from your K&N, although its not entirely neccessary.