Decided to go ahead and install the air filter. Found out that I could not remove the air filter housing after installing the nose gear fairing. The leading edge of the fairing was too close to the housing and would not let it drop clear to be removed. To solve this I heated up the housing with a heat gun and formed a dimple in the back side of the housing. Does interfere with the air filter and gives just enough clearance for removal. Got lucky.
Applied K&N oil to the filter and let it dry for an hour before installing.