What's this hose on my T-case??

My truck is a 5vz-fe. I was under my truck today changing my fuel filter. I looked over at my T-case and saw this hose hanging off what I think is the motor/actuator. The hose is old and cracked and slipped off. I chased it with my hand and it seems like is connects somewhere on the top of the T-case.

In the pic I am holding the hose right by where it connects (male end on right). What is it for? Is it vacuum? I haven't had any problems with my T-case lately, but it looks like the hose has been detached for awhile, so I would expect something?? Thanks.

 

Breather would be my guess.

 

Yeah, but it connects on both ends, so it's sealed. Wouldn't a breather be open on one end?

 

The transfer case breather vented into the tail housing of the transmission which also had a vent, at least it did on my 02 v6 spd.

 

Hmm. It doesn't come directly off the T-case, but the actuator instead.
But since I haven't had any trouble, it probably is the breather? I'm attaching a better pic.

It's the curved hose in the center of the page, that is wrapped with tape on the left side. Comes off the black part, goes above the T-case and attaches again either at the front of the T-case or the back of the trans, at the top.

 

I found this thread with the same question:
http://www.yotatech.com/f2/99-4runner-transfer-case-vacuum-line-238943/

I'm also looking at the FSM diagram. If I'm understanding it right, there are 2 breather hoses. One on the T-case and another on the actuator. I'm pretty sure it's the breather hose for the actuator.

And found this in the 2nd gen section. Same hose. Same problem. Same question. No one answered:

http://www.tacomaworld.com/forum/2nd-gen-tacomas/165112-what-does-hose-transfer-case-do.htm

 

This is proof you are expanding the TW knowledge base.