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I stopped by yesterday to check out Zwede's beautiful BB coupe and the custom exhaust system he has installed.
He's using some Dynomax race "mufflers" (sort of like the old Smittys or Cherry Bomb muffs) under the frame behind the trans in front of the mufflers. This allows very high flow (2.5") with more sound and noise reduction for an acceptable ride. The 4" O.D. does reduce ground clearance somewhat but not too bad with the 27" diam 17" TT wheel/tire combo he's running ( which looks great!).