Cold-air intake installation issues

[KirbyVII]

To start off with, I'm not very car savvy. Just bought this car all of about 3 months ago.

So, I decided to do a bit of an upgrade to my '97 318ti by replacing my stock intake with a K&N cold-air intake. I ordered the K&N suggested product, received it and tried installing it yesterday. Funny thing, my layout is a little different than the photos the installation instructions show.

This is the filter: http://www.knfilters.com/search/prod...x?Prod=57-0276
These are the instructions: http://www.knfilters.com/instructions/57-0276_inst.pdf

Give Photo A on the instructions a little look-see.

My engine 1: http://www.majhost.com/gallery/Forum...r/100_1360.jpg
My engine 2: http://www.majhost.com/gallery/Forum...r/100_1361.jpg

That is my set-up. Though there are several differences, the important one being the extra something-or-other taking in filtered air that is NOT shown on the instructions. I have no idea what it is, but it's a Pierburg PA6-GF30 (possibly a secondary air pump according to a search). I have no confidence in installing the new intake while just leaving this thing un-filtered. It's there for a reason and takes in filtered air.

Am I just SOL on this cold-air intake idea or what? Any help would be very appreciated. If you can tell me what it is, what it does, etc., that'd be useful too. Yeah. Pretty much anything.

Thanks in advance!