So I sprayed the yellow part of the filter with the oil that came with the K&N filter cleaning kit. It didn't really turn it to the all red color. I didn't spray that much on there though. It seems like it needs way too much oil to get back to the red color, that's if it even changes to to the red which I am starting to doubt. The oil in the K&N kit is a red color too and it wasn't really doing the job.
I am still confused on this one. I have been calling different GM service shops and no one seems to be familiar with this setup either. The filter seems to come stock with the red color and this link says "The free-breathing air filter is non-oiled - which means it won't interfere with the computer sensors".
http://store.gmpartshouse.com/partlo...catalogid=4018
I was bothered that I oiled it and didn't want to drive it. I just ordered a new one from my local GM parts dealer, was $115. I am curious to see what color it will come. From what GM says above about the oil too, I bet is why many on here have had troubles with the K&N oiled CAI systems.