Hello All!
It's my first post on the forum, as I've got some nouse as regards upgrading your filter.
Yes, by all means fit a K & N panel filter in your air filter box. It's an easy job and you get a smart sticker too!
BUT - it's not going to give you any great improvement in performance. I fitted one on my 16V 6N2 (which already had a fair bit of zip), and though it does improve the engine's response, it ain't a big performance lift - and sorry to say, your engine will sound no different...and due to the crap design of VW's breather line, your panel filter will get a nasty engine oil coloured mark on it quite quickly.
I know you said you quite liked the look of your engine bay in stock form..but DO DO DO consider getting the K & N 57i induction kit. Any number of reasons, but here are a few to ponder...
1 - it looks GREAT! (shiny chrome pancake, remind anyone of their Mini Coopers?
2 - it makes a VERY NOTICEABLE improvement in tug. Esp if you're putting it onto a 16V engine (either 75 or 100 BHP) you'll notice a load extra torque and zip through the power band.
3 - it sounds EXCELLENT. Good and raspy higher up, and (dare I say it?) that throaty rumble like a Scooby STi in the 2000-3000 range.
Finally, it ain't tricky to fit. Give yourself a couple of hours and presto!
I shall post some pictures soon for the "here's one we made earlier" thing!
Hope this helps?