dynoed sts kit today
Running the methanol injection for any boost level will allow you to increase timing advance and make more power. As IAT rises, there is a table in the computer that commands timing retard (more for higher temps). This is not caused by knock, but used to try and prevent it. However, because of increased IAT, knock is more likely to occur. Even though the STS piping acts as an intercooler, for high boost (8-10psi) the methanol is usually desired. For low boost it is not needed.
Lets see that 10psi dyno graph...
-Sly
The Best V8 Stories One Small Block at Time
and trtTurbo: the intake side has nothing to do with where it is mounted, it takes a certain amount of CFM to produce a given horsepower, a bigger turbo will have the capability of flowing more air than a smaller one. the exhaust is where the real difference is, not the intake.
If you run low boost then you might not gain much with an intercooler but over 7psi you will need one or you'll need Alky injection. One or the other or else the motor wont see much power

I went with meth. Check sig for dyno sheet. Imagine on an LS1

