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Corolla E12 'Problems'

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Hello everyone, i bought my Toyota Corolla 1.6 16v vvti with 170k kms (105k miles) a month ago and i love how it drives but since i'm new to Toyota's, i have a few questions about them. 

Since i bought it i keep hearing a squeaking noise, like the serpentine belt but it comes from the clutch/transmission area when stopped and in neutral. My first thought was the throw out bearing but i'm not completely sure since it only occurs after 'hard' riding (high rpms). 

When i was cleaning the engine bay i found something that looks like a 'bypass' for something. (picture) It connects to the wiring harness that goes to the lights, i do not have fog lights. 



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It has a part number on it specifically so is supposed to be there? Did you check the part number to see what it's for? Is this it?



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RE the squeaking, my E12 starting randomly squeaking.

Look in the drivers footwell, to the left, theres a little black circle thing, with a cable going into it. Unplug this cable, does the squaking stop?

Its a temperature gizmo, if you unplug it you will no longer get hot air through the blowers. I got a 2nd hand one for 15 quid.


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