It is short ram intake only, and includes a filter. It's not a $60 KN filter but it is a decent filter and cleanable.
I never used the cold air pipe and ended up misplacing it.
As far as that sensor, it is for air temp. And there are 2 things that you can do, well 3 i guess
1. just zip tie out of the way
2. cut hole in filter and put there
3. get 3" piece of pipe, drill hole, and you have just enough room for filter still