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You can use either oil, your choice. Synthetic is better as pdiggitydogg said it doesn't break down as easy.
OH GOD WITH THIS BYPASS STUFF ! Why do people insist on using these things? Do you people like to drive your cars through lakes or something? Normal size puddles, rain and snow will not affect the Cold Air Intake ! The only way you can Hydrolock your motor is if you SUBMERGE the filter in water. That means you would have to drive your car through a puddle of water that is at least 12 inches deep.
The little splash of water, if any, that may get on your filter from driving over a puddle will not damage your car. I have been using Cold Air Intakes for about 8 years now and driven through all kinds of snow and rain and I never, ever, hydrolocked a motor.
If you insist on using your bypass valve cut the intake in half and install it in between the 2 pieces. It should be placed in the middle of the pipe between the filter and the throttle body. If the intake is already a 2 piece then put it in between the 2 pieces.
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