Yeah, I learned of the over-oiling the hard way. Every time I would service the K&N, I would re-apply the same amount of oil as I did during the install and learned that was a no no. Since then, I have only been cleaning, not re-oiling as I know it was over-saturated. I also over-tightened the hose clamps at the time of install, causing the end of the intake to shrink/bend. Pretty sure it needs replaced, I'll post a pic. That's where I get the oil buildup on the outside of the gasket.

 

Plastic cracks, look at the plastic pipe very closely.

 

Whoa, whoa, whoa. Don't tell me that you haven't been oiling your K&N at all? Cleaning it (correctly) removes ALL of the oil, it HAS to be re-oiled. You just have to be stingy when spraying the new oil on, and let it soak into the pleats fully, with no white spots left.

If you have oil left on it AFTER cleaning, you haven't cleaned it right. If you are not re-oiling it after cleaning (correctly), you are allowing dirt/dust into your engine.