VTV looks correct, but I can't see all of it. It's a little confusing, but the diagram in the Emissions manual is good. As long as you follow that you're good.
Yes, Air Cleaner Flap should be UP when you start a cold engine (vacuum directed to the AC diaphragm), this is to speed warmup by sucking in heated air from around the exhaust manifold - Then, when engine warms, the flap will drop, sealing off the Hot Air Intake tube on the exhaust manifold (HAI) and allow colder air to be drawn into the engine.
Temp seems to be right where is should be.
I STRONGLY suggest to anyone with a 60-series to get an aftermarket Temperature gauge, even the cheap electrical ones. The stock is just not reliable and by the time it warns you of overheating, or by the time you notice it, the damage is already done.
This one is the simplest to install and just fits in any 5/8 Heater Hose line: