Yeah it will help. Basically you want to use something that will move the oil out of the filter and it may well take a few washes - you will need some patience. Don't be too stubborn with it either, give it a gentle brush with a potato scrubber at most and then leave it again, they're quite durable filters so it'd be a shame to just scrap it. Don't fit it damp, it wont do your engine any favours. Let it dry out thoroughly whether you use a hair drier on it or whether you stick on a radiator etc. Really you should then oil it with K&N's own filter oil which is designed to hold any dust / dirt on the outside of the filter (it's quite a sticky oil). There are some alternatives you can use such as ATF (automatic transmission fluid) and you only need to run a little bit down the edge of each pleat- don't over oil it, in fact, apply less than you think is required so that you don't over oil it.
The pipe that's causing the problem runs from the cyclone breather unit, which is the black cylindrical block that is bolted to the drivers side of the engine between the rocker cover and the cylinder head. The pipe will be about 3/4 of an inch thick and it attaches to the top of the breather and points out towards the front of your land rover. You should be able to follow this pipe to the filter housing. Take the whole pipe off and clean it as best as you can - don't get any water in it unless you dry it off throughly though. Then you can either just put it back where it was and drive a few thousand miles before you need to clean the filter again, or you can point it towards the floor and then blank off the hole where it entered the filter housing. If you're up to it, you could also plumb it directly into the intake manifold on the engine, so that the oily fumes are drawn straight in rather than being drawn through the filter. They don't need to be filtered.
-Pos