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I just did this and I am very pleased with the results.
If you like driving your car (at times) fast and accelerating hard in the upper ranges ( 5-6K rpms)....then try this.
If you screw up the airbox it will cost somewhat (350.00 or so new), but care should cure this. Shawn Fogg sells a Fogged Air box for 150.00. Very reasonable if you do not feel at ease cutting your own stock airbox. I put the 4" sleeve on the airbox and used black spray paint to shadow the circle to be cut out. Being conservative with the cut, I filed and cut little by little till the sleeve fit.
The result is a quicker redline, and a little better sound. Rather informal but just wanted to relay the value of this modification especially for the 96 1.9 Z3.
Dave