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Not much of a difference if any at all just changing the air filter. A free flow breather kit(SE or Big Sucker), along with the V&H ovals and PC III will give you you're stage 1 upgrade and really wake up the bike.
I am hopefully installing a V&H Oval slip on, and will be getting a PCiii. I also plan to upgrade the airfilter.
Can I install a K&N air filter on the stock airfilter assembly or do I need to change the whole assembly?
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Fuelmoto offers the PC V for the 2008. They also offer an AC kit with a K&N filter. I too recommend you change the whole kit as well as going to the PCV over the PC III.
I am hopefully installing a V&H Oval slip on, and will be getting a PCiii. I also plan to upgrade the airfilter.
Can I install a K&N air filter on the stock airfilter assembly or do I need to change the whole assembly?
My local indy shop does what you are saying. He drills half inch holes in the back plate to allow more air to flow. He claims good results. I was going to try this myself on my 07 ultra because I was having problems with the velocity stack popping out on the K&N free flow filter housing. The second time I reinstalled the velocity stack it stayed in. I probably did something wrong the first time.