JAM 1775,
When I was at Ford this past weekend getting the front end aligned, one of the mechanics gave me a great idea to fix this issue even if only temporarily.
Buy some filter element material. Deutsch sells a piece that is about 2"x4"x1/2" thick ($3.95). Roll it so that it is 2" tall. Stuff it into the tube and put your K&N back on. Since it's breather material, it will allow sufficient air flow to the engine but will also prevent the
oil from splashing up the tube. Replace when needed. Works great!