Does anyone else have this problem with their FWI? Today the temp was around 95 and the intake temp was 120-130 normal driving around town, not sitting in traffic...on the highway it is around 10-15* within ambient. I'm thinking of relocating the IAT sensor to the filter.

Will this cause the PCM to pull back more timing than say if it was 5* within ambient? I have 0* of KR all the way up even with the hotter temps on the IAT, but only 12* of WOT timing.

If your IAT temp was lower you'd be able to get more timing advance, yes.

I also have 0* KR with usually 12-14* of advance, but my IAT temps are usually 110-120.

For the temperatures you are seeing, that is about the correct timing that is in the programming.

Dropping to 90ish degrees isn't going to help you much, summer is here.

On the FWI temps. Keep in mind your S2 was engineered with the IAT right over the hot exhaust and the timing is programmed appropriately. Also.. those temps are in an acceptable range for driving around town.