Tested it both ways Scott! Definitely flows better. Still filtering, but not as fine a particles! Better than a velocity stack though, as far as filtering! It's good enough filtration to pick up the extra flow for me! Nuthin for nuthin man! 
Hoist! 
K&N disagrees with you Howie!
From their website:
Almost all K&N air filters come pre-oiled and ready to use. They are packaged in a clear cellophane wrapper with the words "Factory Pre-oiled - Ready To Install". The filter oil we use is red. A new oiled filter will appear red-pink in color. Some crankcase vent air filters come unoiled, however, they come with a small packet of K&N filter oil so they can be oiled before use. There are also a limited number of filters with specialty uses which are not pre-oiled. These items will be clearly marked as unoiled.
Using an unoiled K&N filter will greatly reduce the filter's efficiency and void our product warranty on filters that come pre-oiled from the factory. If you receive a filter that is packaged in its cellophane wrapper and is unoiled, contact K&N's Customer Support department at (800) 858-3333.