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Well I know of 3 people that got whacked with heavy fines for having headers on their C5's here in California when the smog police nailed them. They still had their cats on also. Its a no no here in ca to run headers unless they are C.A.R.B. approved and I 'm not sure any for the C5's are. Not a big deal 99% of the time, but you get a cop thats pissed at you for some reason and he can write you up for emissions violation for running them and thats a $2500 fine.
I did the catback first, (GHL Magnums) Then did Dynatech LT's shortly after. Loved the sound especially after the header install. The stock Ti's were definitely too quiet for me. Now I've got the best of both worlds, the light weight of a complete Ti system, (Corsa) and the meanest sounding 346 ci Z06 you'll ever hear! (yes, I'm biased)
Check it out:
Seriously though, exhaust sounds are purely a matter of personal taste and a very subjective thing, I like my car loud, some don't. You have to hear a bunch of different systems first, then make your decision.
HTH
Headers are a great performance investment and will usually improve your torque over a wide range of RPM. And the production Ti exhaust is light and does not cause a drone on the freeway. For the street, I ended up going back to the Ti's after running Borlas for awhile. Now I only use the Borlas when racing at the track; you can hear my car coming from 2 miles away at WOT!
Thanks everybody - I'm shopping for headers now. I'm looking at the LG Motorsports Street setup - LT headers, cats and X-pipe, runs about $1195 for the bolt on kit.