It is preoiled.

has any one seen a MPG increase with this mod? I am about ready to buy one for my 2003 4.4. i have done this to every car/truck i have owned and its worked great but i am new to the BMW so just checking...lol

Don't mean to hijack your thread, but, is there a proper way to clean the filter? I hear that if you add too much oil then u mess up ur MAF sensor.
Any input on that?

Guys the filters come new pre-oiled. However after a while (I forget exactly what is the recommended mileage) you need to take the filter out, clean it, and re-oil it. AFE sells a kit for this.

What I did is buy an extra filter and the kit. This way I take the dirty one out and replace it right away with the new one. Then I take the old one, clean and re-oil it, and store it away until the next time I need to switch. Doing this allows me to replace the filter right away, so there is no down time on my truck.

This isnt really necessary, you can just take it out and clean and re-oil it. However the reason why most people have trouble with re-oiled filters is that they do not give it enough time to let the oil set in, or put too much oil on, etc.... So I just let it sit for a day or two in my garage and then store it away in plastic until I need to swap them out again.

May be a little much to some, but it worked on my M3 when I had it, and has now worked for over a year on the X5.....never a check engine light.

yes, if u apply too much oil, u can run the risk of messing up ur MAF.