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You are right AdamDude4, Unless you get that filter outside the engine compartment it is a hot air intake not a cold air intake. You can't get any colder air than from outside. The air inside the engine compartment is heated up by the engine. What you may get in this arrangement is a little freer air flow and of course the sound of the air being sucked in which was muffled by the factory arrangement.How do you like your CAI? Notice anything power wise?
I know some folks have done a DIY with the CAI idea..they took a regular air filter that fits into the airbox of a Chevy (IIRC) and it fits up perfectly with the factory intake hose.. (got photo off googleimages)
I thought about trying this.. but I'm worried about the crankcase breather (I have a bit of oil coming out mine..) or that I'll just be sucking in hot motor bay air unlike the factory setup that gets fresh air from between the hood/grill.