I partially disassembled the HAC tonight. If it's bad what do I have to lose, I figured.
Here is what I found -
That thing is so simple I can't believe they want $350 or so for it. I did find a source for $279 though.
The needle is attached to a diaphram which creates a sealed chamber on the back side where the protrusion goes into the airbox.
The needle is adjustable by removing the nut and dual hose barb. Then remove the center tube with a wrench on the bottom nut. This will expose the needle.
Next, on the backside scrape away the paint that seems to seal the back and you will expose a slotted screw. Remove that screw and o-ring.
Then, grab the needle and pull it up, and, at the same time install the screw with oiled o-ring. This seals the backside chamber and the air pressure inside holds the needle up.
Install the tube, dual barb, nut, and it should be good to go again (at least for a while). If the air leak was thru the o-ring, hopefully this process will help seal the o-ring. If the air leak was thru the diaphram itself, it will no doubt leak again and the unit is shot. I'm not sure what the needle depth should be, but I've heard 3-7mm and mine ended up at 5mm after my experiment so I guess it's better than the previous 10-11mm.
I suppose it may be possible to squirt some liquid electrical tape or something into the backside to try to seal a small leak in the diaphram.