Looks to be hooked up correct. But if there is fuel in that line, to me it means your petcock has a prob! I would say the vac diaphram has a hole in it, that I think would be the only way to get fuel there. The PC is super easy to rebuild, cost about $28. I think I have almost a whole kit (used-I recently redid mine and saved all the parts as they were all good) If you want it,its yours for postage!
04-3,200 miles bought July 2011 with 928 miles. Loaded with acessories to many to list here, see my albums for more details! I also make a custom tank bib specific for the 750 if anyone is interested, ck my albums for some pics.