The hose sounds like the quick drains we have on our commercial welders & generators. Does it look like a black tube you turn and then pull out? Might say Donaldson on it.
They're fine, but somewhat useless on a car. I'd just slap a normal plug back in (magnetic if you can find one).
As for oil - with THAT many miles on it, I'd stick with "dino" oil vs. synth. Might start to wash crud out of places you want it to stay (ring lands, etc).
If you rebuild, then use it after ~1000 miles of run in.
------------------
87/88 V6 5spd "FormulaGT" Turbo, 88 Formula
My page:
http://www.fierohut.com