What you have is one that is in worse condition than normal. VR customer service is top notch though and they WILL take care of you. As far as the gap, as Paul mentioned, it's to allow some movement. IF the filter, rubber seal, and filter housing are snug then all is well.
As far as the brass fitting, I cut two barbs off of both ends of mine. IF VR is listening, I would like to see a different setup than the barbed fitting pushed through the coupler. Over time that will become worn and not seal very well.
Now fair warning. DO NOT put the VR on and drive around if you are planning on switching to something else, for better looks or quality of build. There is something addicting about driving with that intake on.
Just sayin.
Oh and if you aren't happy with what you get from VR, I have something in the classifieds you may want to try. Shameless plug.