No, you don't need any firmware changes. Something else went awry with the installation, or it is a coincidence. The system will make a slight adjustment over the next few driving cycles, but you should not notice any performance difference as it adjusts.
Look for a leak between the mass airflow sensor and the throttle body.
The only thing you gain with a K&N induction kit is noise. If you like the sound, great, it is your car, but even if you keep the filter oiled (which few people do) you let more dirt into your engine. Be sure to keep your old filter box because the car will be harder to sell with that filter on it.
A 2000 is an e46.
Many thanks for your response, by the way, mine was one of the last E36 before they changed to E46, so in repsonse to your last point, 2000 E36, W Reg
Well I learn something new every day. I knew there was a rather complicated overlap among the body styles. According to my reference, the first of the e46 sedans were 1998 models manufactured in 10/97, and the last of the e36s were convertibles manufactured in 9/99 but I assumed that those were considered 1999s. Now I am curious. What are your body style and date of manufacture? I have been an e36 fan since the first time I worked on one and saw how they are designed.
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