Thanks for the interest guys. No time this past weekend to work on the intake; had to do a brake job on it because one of the calipers stuck.
I am not currently employed in an automotive field, but have held ASE certification in the past. After reading many threads about the K&N typhoon on the base model motor, it seems fairly obvious to me where people are running into MIL codes for a lean condition. Capping the PCV hose with a breather negates the purpose of the PCV, or Positive Crankcase Vacuum, hose. The ECM is programmed to a$$ume that the intake is scavenging oil vapor and exhaust valve blowby via the PCV hose to mix with the air/fuel charge. Depending how your valve stem seals are anyone running a breather instead of a pcv could be collecting a considerable amount of oil on the inside of said breather.
Simple solution: get a 5/8" 90 degree silicone elbow ($10 on ebay, or $4 on ebay.au - but extended shipping from china)
then go to your local home store and pick up a 3/4" to 1/2" PEX union. I paid $1.54 for the union at my local depot.
Use the union and elbow to bridge the gap between the valve cover and k&n's pcv hookup like so...

I'm planning on trimming 2" to 3" off one leg of the elbow to make it sit under the valve cover the way the stock hose sits
This obviously won't flow as much as the stock pcv hose, but since some people don't have MIL issues, I believe it will at least make it easier for the ECM to relearn new parameters, reducing the likelihood of MIL issues.
The rest of the instal is as k&n writes it in the instructions.
Will post pics of it installed by tuesday or so; maybe earlier if I get fired over what I did at work today..........