Personally I don't feel the added contaminates in the engine are worth the miniscule gains from a K&N filter.
from wiki
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The company claims this construction allows more air to flow while dirt and particles stick to the oil, and asserts this configuration more efficient than paper filters. This might result in more oxygen getting into the engine, allowing vaporized fuel to burn more efficiently, thus increasing horsepower and fuel economy. However, independent tests call the veracity of these claims into question[2]. Aftermarket cotton gauze filters let more particulates through into the engine than stock paper filters.[3] K&N also asserts its air filters more environmentally friendly than ordinary filters, since they never need to be replaced and thus do not end up in landfills or incinerators.
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http://en.wikipedia.org/wiki/K%26N_Engineering,_Inc.
I'd rather just get a clean paper filter with every oil change.
As far as exhaust, get the pace setter header and take your truck to any local exhaust shop. They have pipe benders and will install a cat. converter and muffler for you or let you bring one in my experience. Last time I had exhaust run for a truck, it ran me ~$90 bucks or so plus the muffler. That was from the exhaust manifold to the tail pipe.
Only time I've ordered exhaust was when I wanted stainless for my vette and bullitt.
Although you should take everything I say regarding these trucks with a grain of salt...crushed salt. I know less than spit about them.
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