First off, your Jeep will probably never run well when first started on a cold morning, so don't use that as your measure of success. The "M" is the port on the intake you asked about in your other post. In the diagram above it's different, but in factory diagrams or on your underhood sticker, you'll probably see a line running from the "M" to your distributor advance. Ported vacuum works too.
The CTO is important for opening/closing the EGR valve and if the EGR is not working, that will affect engine performance. Since you don't care about emissions, you could probably remove the EGR entirely. In the diagram above, you can see the TVS on the back of the air cleaner - it has a line coming from the CTO and one going to the EGR valve. I would guess that since you don't have a stock aircleaner anyway, you should just bypass the TVS anyway and run a line directly to the EGR from the CTO - its only function in life is to open (or is it close?) once a certain air temperature is reached inside the air cleaner.
The CTO is important for opening/closing the EGR valve and if the EGR is not working, that will affect engine performance. Since you don't care about emissions, you could probably remove the EGR entirely. In the diagram above, you can see the TVS on the back of the air cleaner - it has a line coming from the CTO and one going to the EGR valve. I would guess that since you don't have a stock aircleaner anyway, you should just bypass the TVS anyway and run a line directly to the EGR from the CTO - its only function in life is to open (or is it close?) once a certain air temperature is reached inside the air cleaner.