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It is a baffle (muffler) for the intake system. It's job is to quiet down the intake noise and to hold the misc. connections for PVC return and etc. The air filter is off to the side in a seperate box connected with a hose.

 

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The problem with the baffle boxs is that they mess up the air flow with turbelence(sp). The CAI straighten out the air so it is more efficent(sp). AirRaid makes tubes that replace the baffle box. Granted it not a true baffle box with baffles but I think it more of a dog and pony show item. A place to put the engine size. I have the K&N also and gonna put on the tube its called M.I.T (modular intake tube). Or i am just going to a metal working place and get a tube mandrel bent to copy the M.I.T.

 

The airhat is baffled, you can see it when you remove it. I have installed my CAI (no air hat) and then ran the stock set-up with a K&N drop-in and definately noticed a power increase with the CAI. You can even feel it in the gas peddle. It takes less effort to punch the throttle without the airhat then with it.

I have first hand experience with both and their is an inprovement with the CAI.

I removed my CAI because of the increased exposure to road grit and bugs. K&N has been known to filter less than paper (based on oil analysis results showing higher silicon or sand numbers when using K&N filters).

Bill,