It could be a number of things, the first thought is the MAF sensor. If oil from the K&N filter gets on the sensor, it could cause it to read improperly. Did you descreen the MAF?
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On the H3's there is no screen on the MAF.... I don't think it is the MAF....It just happens when you step on it hard, right? I think it is just a glitch in the system...You just probably need to take it to the nearest dealer to get it flashed to see what code or what fault it is picking up...
Law, what happened to yours with the K&N Oil? No screen on the MAF? I dont have an H3 but normaly the screen is there to better flow for a consistant air reading. hum Bob, I assume it all started when you put in the 77 Kit?
Take it to the dealership for service. They're most likely unrelated and total coincidence. It would be pretty hard for the maf to get soaked with oil on that design because I believe there is a little plastic shield around the MAF element. Totally different design as the H2 and other LS series motors.