If the K&N is brand new, install it as it is as they come pre-oiled. If it has been cleaned, then a light mist of filter oil is fine. Dont use too much, as too much will clog up the filter and suck the filter oil into the engine.
No problems with spark plugs, as long as they are new and are the correct plug for your engine they will make a difference

NGK is the better brand but the difference is not much.
Search for NTK Exhaust O2 sensors if you want to replace them, good brand and cheaper than Bosch. Nissan actually buy their O2 sensors off NTK, so buying one from a dealer it is the same product without the dealer pricing
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N14 Pulsar
VQ35 conversion with major N/A upgrades, 6 spd FWD manual HLSD
18" Rims, big brake kit, Coil overs and freshly painted
Smashed Black VY SS Ute

The workhorse...
Twin turbo 5.7L LS1

Boyd Coddington 19" Turbine Wheels
AP Racing 4 Piston Brakes
Tein Coil over Suspension
HKS EVC 6 Boost Controller
PLX Devices DM-200 OBDII
Custom Front Mount Intercooler