Just for the record since it hasn't been mentioned yet, you don't HAVE to get the C&L intake with the 85mm MAF housing. I'm using it with the stock MAF housing but with their conical filter and filter cover. You do have to use their filter cover because the intake pipe won't fit otherwise (I tried).
I have the K&N and have had know problems whatsoever. My car put down 324/341 with a Diablosport tune.
I hope that's with more than a K@N and a tune, or that shop is blowing some serious smoke up your ass. *Edit* I saw your Long Tube post, so you have more than that.