Car Modifications Is This Ok?

Hi there, just some queries i have some of my car mods. SO far, i have changed my air filter to a KNN unit, but i have a GREDDY TRUST AIRINX2 ready to go in. But my friend tells me that during wet weather, there will be forced cold air induction and my engine might blow as a result. What are the risks of this happening in a 94 TEG VTIR? What are the risks of a foam filter? Now, i drive my car everyday and melbourne is QUITE wet n cold. So i have a couple of options:

1) Go with the KNN(just the pod)
2) Change the air filter in the ORIGINAL BOX to a KNN
3) Use the GREDDY TRUST AIRINX2 filter (foam)

Also, can anyone recommend me a good exhaust system. I was thinking about APEXI n1 SYstem. ANd shockers, i was looking at KYB. Camshafts (type r or toda). I want to optimise power in my NA car. Please let me know. THANKS ALL!

Also, what about a AEM CAI instead of the previously mentioned air filter mods?? Thanks again.

well...ur CAI isn't going to really suck up water unless u go over a HUGE puddle an submerge it or get enough water splashed up there. but jus driving on a wet road...no way will u run a risk of hydro-lock. they have by-pass valves, but most are only proven if the filter is SUBMERGED, making them usless for puddles splashing up.

as for exhaust...jus depends wut style u want. i personally love the look an sound of the tanabe racing medalian exhaust...but really to see gains, it's all in the piping, not the muffler or style of it...