The breather (aka Flame arrestor?) goes in with the air filter. There is a hose which attaches to the side of the air cleaner base. The breather has a cotton-ish filter on one side, and a nozzle on the other.
I could be incorrect, so perhaps you'll get better advice..
Hmmm...that sounds about right Gooney. As far as the A/C goes, you know as much as I do. The label reads "A/C Breather". The other labels for the tune-up kit do not read A/C. But the way you describe it, is what I see. A plastic piece with a male fitting and a cotton filter piece in it.
Those usually go in the side of the air cleaner where the large passenger side PCV hose from the valve cover attaches; they're usually retained with a spring clip. Dunno if the '78 Corvette air cleaner has the PCV hose going into the side or up into the bottom of the baseplate; remove your air cleaner lid and see what you've got.
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