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If it is making a rattling noise it may need replaced! But looking at the way your vacuum hoses are connected to it, I don't think they are correct. The hose from the distributor vacuum advance should plug into a port on the TCS. I see that yours goes directly to the carb. I'm not a mechanic so I'm not sure if that makes any difference or not? You can do a simple test to see if it is functioning properly. Get in the car, start it up and push in the clutch. Run through the gears. When the car goes in to 4 th gear you should hear the idle/rpms increase. If that doesn't occur it's either bad or hooked up incorrectly. Here is a photo from my 73 AIM showing how it should be connected. It will be the same for your 74 4 speed.
There are various posts on the forum discussing how to bypass it.
Ralph is correct, your valve covers are reversed.
Hope this helps.
Tooch