The flap on the right adjusts between heat and cool. The flap on the left is the front vent diverter, IIRC. The left flap should move when switching between center vents, defrost and/or footwell vents.
Both should be covered (you shouldn't be able to see those holes in the flaps). From the factory, they were covered with foam. A lot of us that did the repair went with duct tape (works great).
