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The hose is for motor cooling, and necessary to be plumbed into the a/c box just like the old one, may need fab up something to work there...I did...make sure it's the absolute largest diameter you can, that motor needs cool air to survive....
You may have already seen a diagram. The C4 hose is a U-shape. You might be able to cut and section it off to be straight (enough) and avoid the heater hose.
Yes, the spacers have to be about 3/4 inch, I have heard comments of 1/2 inch and up to one inch....dunno about any 'engineering/experimenting' behind those comments....
As for the hose, as I recall, I used the replacement/original hose, and adapted the blower box end.....
it was not much problemo anyway....