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You are correct about the exhaust theory, but too much can be just as bad as not enough. I would go with a 3" pipe off the y-pipe and then 2.5" duals from the muffler back. Flowmaster makes a couple of kits for this truck and you can check them out at summitracing.com, as well as other major manufacturers too. Try some headers on that motor, but if its a 4x4 i wouldnt go with full length headers. They hang too low and can get beat up wheelin'.
Longtubes and a single 2.5" is your best bet on a 302. That'll produce the most low rpm torque. I have never seen longtube headers hang much below the frame rails, so all sorts of suspension and drivetrain parts will hit long before the headers get close. I doubt this will be a concern on a 2WD anyway.
Believe you me, I have smashed, broken, twisted just about anything you can think of while wheelin'. The collectors on the full length headers in my bronco were flattened like pancakes after some hard trails.
Check out summit racing, they have all kinds of kits and headers etc along with pricing. The only other way to do it would be to take it to a shop and tell them to build from the motor back, which is not cheap compared to the pre-made kits.
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