Effectively, Yellow and Red are the same. So, leave the Red "U" tube alone, join the Yellow to one side of the "catch can". If this is a track car, you will need to direct the other side of the "catch can" somewhere other than atmosphere - this gives you an oil / air separator. On the track, they are going to be concerned about the potential to drop oil on the track - a can vented to atmosphere presents such potential. Block off Green - although it really should be connected to a PCV valve.
As you will have found in the many threads on the subject, loose pack the can with steel wool to give the oil vapours something to condense on. And because it is dealing with vapours, ie gasses, it doesn't matter a rotund rodent's derriere how high the can is relative to other engine components.
The required volume of the catch can depends on the engine capacity. Smaller engines require smaller minimum can sizes, obviously.
And the reason you need to separate the oil from the vapours is that any oil that gets into the intake air stream lowers the overall octane rating of the fuel/air mixture, leading to an increased risk of detonation on boost.
While you are in there, you will get far better benefit by moving the pod to a place where it can always get cold air. As it is, it is taking in hot air from the engine bay, the turbo is compressing it (making it even hotter), then the IC is trying to cool it back down again.