1hp at the rear wheels is well within the repeatability error of any dyno (engine or chassis) that is in general use, so for all practical purposes, the results were equal. I would not base a decision on that small of a difference without a lot more research. We often make changes that we think should help, only to see a small loss. We rethink things, make changes in other areas, and more times than not, find the gain we were expecting. The tests we've done on street cars(not many) have shown the filter HOUSING area to be the biggest restriction (intake noise, ya know). So to put a K&N in the stock setup is a waste of time in most cases. Open up the whole path. We use K&Ns on our NASCAR late model stock car, which races on midwest dirt tracks. Particle ingestion is not a problem, for the evidence would be apparent in the filter housing or carb. Flow Bench tests on this setup show the filter poses NO RESTRICTION at all. The same can't be said of any of the paper elements we tested. Like any engine, you must attack the point of most restriction to realize the greatest gains. On the 850, I would think this to be the exhaust system, but I have no hard data to back this up. Evidently the M3's air filter was not restricting the program, so no gain was realized. Mark