With standard cans on your 07 there should be no problem fitting the stage I as a replacement for the standard paper filter and your sensor will probably cope with it but check out the threads by clicking on the XTMods in my signature - particularly the ones relating to co adjustment. Once fitted just check that it has not introduced any side effects of surging or cutting out and check the plug condition after a couple of hundred kms that it is still straw coloured and not white with brown spots.
The stage II introduces a whole lot more air into the system and I do not know if the Australian model has the same ecu map as the European version which already runs lean in places to comply with EU emission regulations.
If you join the XTSupporters for a tenner(�) you will have access to Ask Kev on a one to one and his advice and that of Freez is worth more than the loads of Oz dollars at your local dealers (unless it is Kev's!).
Kev and Freez are working on the 07 onwards mod and there may be some results soon - within a week or so.
Good luck with your bike and give the missus a kiss

for such a thoughtful pressy - you just need to convince her now that it needs a PC III to make it perfect
- like her!