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Probably the most discussed and controversial subject. I prefer a standard open system like the Blackwing, K&N, etc. for any other that might gain some power on a regular LS1/6 motor.
The Vararam might add a couple HP, but is also the only system that has a rep for potential hydrolock.
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The Vararam is considered the one that will give the best performance increase, but it also has fitment issues that make installation difficult. Another good air intake is the Callaway Honker - easier install and still gives a nice performance increase.
I personally run the Blackwing on my car - it is a simple install, looks good under the hood and flows better than the stock intake. Probably not much in terms of performance increase though.
In a stock LS1/6 engine for the C5, the only way to increase performance is to get a colder incoming air through the intake system. Any changes that take air from inside the engine compartment is taking heated air. A true cold air system will allow ambient air through the intake and colder air being more dense it will increase the efficiency of the engine. VereRam, Calloway, Icebox, etc will cause a slight increase in performance. Better bang for your dollar is to have a good tune in your PCM. The low to mid-range power increases from a tune are more noticeable. For those looking for the best performance--usually those who track or autocross--changing the lag in the Throttle Body response is needed.