Post #9
For info on how a K&N filter works, see this: http://www.aptfast.com/kn_additional_stuff/KN_airfilter_facts.htm
(It is a bit of a marketing blurb from K&N so don't expect all sides of the argument!).
Personally I am a bit lukewarm about K&N filters in general as, despite any marketing blurb, logic says they must let larger particles into the engine - even when properly oiled, i.e. better flow = bigger holes through which the air flows = larger particles in your engine. How can it be otherwise? My car came with a K&N cone filter installed and I am considering returning it to stock. On the other hand they have sold untold millions of these things and most people seem happy with them.
If there is oil in your intake system it is either because the filter was well over-oiled, or because you have clogged breather hoses or even a worn engine. Is the oil in your intake system K&N oil or engine oil? K&N says (see link above) that a properly oiled filter will not let excess oil into the intake system, and there are arguments all over the internet about whether or not the filter oil is clogging air flow sensors.
I would clean the filter, re-oil it as per instructions, clean out the breather hoses and reassemble, checking it after a few hundred miles. Or perhaps return it to stock.
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Cherry Rallye SOLD