I would leave the stock airbox in place and use a K&N. Im not sure how much room is in an Mk4 engine bay but you may want to run some kind of ducting from the box to the lower grill. Ive seen it done before and thats what I have on my Mk3.
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Joe P.
2002 VW GTI 337
1969 VW Type III Squareback
www.vdubnut.com