I'm still anti high-flow filter... unless it's a larger filter element (which K&N isn't). There's only way to get higher flow:
1) Bigger filter element
2) Bigger holes in filter element

Guess which one K&N is: http://www.bobistheoilguy.com/index.php?option=com_content&view=article&id=58&Itemid=66

I must say, I agree with Jeremiah on that count. Particularly with a MPI engines that use the (very finicky & VERY expensive) MAF sensor just after the air box. Oil on the cloth filters needs to be refreshed... guess where that dirty old oil ends up --> in your intake... & all over the MAF plates/honeycomb. Had one oldschooler say to me: "They don't filter anything, but they make a great place for the birds to nest when the engine don't run anymore!" 

Fuzz

Yeah I am thinkin that rather than hope I alter the intake the right way, I am going to do what jeremiah said and just take it off at the elbow to open it up a bit.

It'll help, but don't expect miracles. It's one of those mods that works best with a high flow cat, exhaust & 2" exhaust pipe. My Samurai runs a lot better with all that stuff on there, but if I were doing it all over, I'd be looking for a 1.6L swap.