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Do the down pipe, gut the cat and leave the muffler. unless you want more sound from your pipe. If you decide to get a chip at some point it might be worth your while to get a better exhaust but for the most part with the DP and cat changed its a pretty decent exhuast.
While I would not buy Banks stuff I do repect their opinion on some stuff and banks changes the DP and tail pipe with their kits and that it for our trucks. the muffler is a very good flowing one and its illegal for them to do anything to the cat. the Tailpipe has a few pinched angles in it but for a stock truck even with a mild chip it would be ok.
For all the more the extra cost is I would go ahead and do a whole system now. I'm running AFE's on my trucks and can't complain. It probably took less time to put on a new system then mess around pulling this and that out of the stock setup.
Unless it is rusted through I would stay with the stock syatem. The only reason I replaced mine is because the down pipe and the tail pipe got bent. The down pipe is <$100 and gutting the cat is free. I paid almost $600 for my stainless system.
I thought about the stainless....but it was more than I wanted to spend. Sure does look nice though! I've got around $315 in my 4" turbo back straight pipe systems. Only aluminized but it's holidng up well. After seeing the $100+/downpipe and thoughts of fighting with the pipe after being clamped for 10 years it made my decistion easy.
Here in the dry southwest we can get away with aluminized. My AFE 4in turbo back system from dppi cost me all of $370, including shipping and a nice dual wall stainless tip. Their dp goes from 3 at the turbo, to 3.5 halfway down, to 4 when it turns under the truck. Since my Banks dp has an EGT bung and AFE's does not, I mated my Banks dp top half to AFE's dp bottom half, where it jumps to 3.5. AFE's system is easy to install. Even with mating the dp halves it took all of 3.5 hours. But my firewall was already clearanced for the 3in dp from the previous Banks installation. Clearancing for a 3in dp might take an hour or so. Removing the stock flat dp takes some time also. There was a slight difference in power, but a really noticeable difference in sound and EGTs going from 3.5 to 4. And it looks real good with the right tip. Mileage seems to be the same but my right foot gets heavy sometimes.
I think going to the 4in system was well worth it.
Bunch of suckers! My SS 5" system cost me close to $7hundo. Its got a 7" chrome tip on it that keeps it dope boy fresh(My pimp lingo translated= Makes it look saweet!) My system goes 3.5" SD DP top half to a 4" bottom half to a 5" bell to 5" muff and kitty free system. It louder then my 4" by far, and at full throttle with the new turbinator and the chip on, its ear piercing loud. Good luck
Cowboy Steve
P.S.- Stacks are overrated in my book. Whats the point of havin big squirters and not being able to lay smoke down the side of a new duracrap? Just my $.02 worth
If you haven't learned by now Im really greedy and thats all I do is go for greed. So when I had the choice to up grade to 5" I was doin it. I ran a 4" system for awhile but i like my 5" way better. Nothin says "testosterone junkie" then huge pipe and black clouds, lol.