The blue line is coming out of the top of the VCV, you need that as it sends a vac signal to the transmission. What switch are you referring to? If it's the one close to where the valve used to be, just plug that other nipple off. I'm pointing to it.
Yes, the item on top of the cam cover is the 3/2 valve. It's under the black box, you can just take it off, you see mine is unplugged. You may be able to tell the line coming from the top of the VCV has a 3 way, one from the main vac line, one to the VCV and one to the transmission. The bottom side is plugged to a piece of hose and to a black line that ends inside the cabin, it's a vent.
The pics should be labeled egr, not erg.