Make sure it is attached as youll be drawing unfiltered air into the car. Im guessing with that the K & N itll be the hose that bypasses the inlet manifold. Just think of all the crap itll be drawing in!!
To put it right, take of the whole induction assembly off the throttle body unit. You do this by unscrewing the tightening screw on the circlip.
When its off, youll see that the main unit has the big hole (that the circlip goes around) and a smaller hole. The smaller hole should have a small length of pipe in it, about 1 inch long, and protruding about a half inch either side of the bottom of the unit. If it doesnt, this bit of pipe might still be stuck to the small flexible hose that was loose in the first place.
When you replace the unit youll have to mate the pipe with the flexible hose, usually before youve fully tightened the main unit into place. Use some Vaseline or Fairy Liquid if the flexible hose wont slip over the little pipe. It also helps if the two are warm (use a hairdryer to help if needs be!!).
Good luck!