Check out this write-up: http://www.powerstroke.org/forum/99-03-7-3l-general-discussion/267128-truth-about-k-n-intakes.html
It's non-biased and would be informative to your situation since you just bought your CAI. You "should" consider switching over to another filter (I use the K&N tube with a 6637 attached at the end. Fits perfectly). You can keep the K&N setup, but lose the filter. It's not a total loss.
Here's a link to show my setup: http://www.powerstroke.org/forum/at...discussion/43505d1348713970-foil-delete-2.jpg
K&N pipe/6637 filter. Everything fits together perfectly.