Normally closed.  Just used for initial bleeding.
Yours looks weird though.
See if you can look at another 1.9 waterboxer vanagon.
2.1 use a slightly different arrangement. 

Even if you left it open, it wouldn't matter much though. 
Scott 

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of
BJ Feddish
Sent: Wednesday, January 09, 2008 10:57 AM
To: vanagon@GERRY.VANAGON.COM
Subject: Bleeder Valve Poition

I can't remember off hand if this bleeder valve is supposed to be closed for
normal driving and opened for bleeding or visa versa.  Does any know which
way this thing is supposed to be? It's an 83.5 BTW, I don't think this valve
is on the later models WC.

http://tinyurl.com/yp7q62

Thanks,
Bryan