I concur, from what I've heard the K&N filters can cause wonky jetting problems. WHat size jets do you have in the dyno jet kit? Maybe what you could do is build a McGuiver version of a Holeshot kit that works 100%. I'm assuming you have a 2G bandit 2001+.
I think in the Holeshot kit they give you 107.5, 110, 112.5 jets. Do you have these sizes in the dynojet kit? Supposedly the dynojet needles are the cause of the wonkiness from what I've researched. If I had those parts I would try and make a McGuiver version of a Holeshot by doing the following:
Install 110 size main jets, 2" airbox mod, shim the stock needles one .05mm shim, Either leave the pilots stock or go one size up(17.5) if the dyno jet kit has this. Leave the stock filter inside and sell the K&N. Install advancer. See how it runs.
Does the Dyno jet kit make you change the emulsion tubes? What exactly does the dyno jet come with? I wouldn't get disapointed any kit can be made to work.