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You’ll find a quick and dirty explanation in post #11 of THIS thread, if you still have questions let us know.
No it doesn’t matter which hose goes where on the ACV.
Also, this is basically a hydraulic valve cased in plastic which makes it inherently finicky. If the threads aren’t completely dry when you install it there’s a good chance it will leak. The ideal situation is installing a new ACV on a just out of the box (dry) PS pump. A dab of hydraulic thread sealant, Loctite or Permatex, is also a good idea. Do it right the first time or you may be doing it again…