Hi again, Ed.
After getting tired of the racket my headers made, I switched to Eagle manifolds. They fit the car fine, the downpipe on the driver side needed to jog pretty quickly to avoid (I think) the steering shaft, but it was a pretty simple arrangement. I had custom built my whole exhaust system and my Y pipe was under the car, behind the transmission, and each manifold needed to replicate the path my headers took. I'm not sure what it would take to get the EP manifolds up and over the bellhousing to join with the factory Y pipe.
As for the exhaust, the biggest thing I can tell you is NOT to go 3".
I did and it was awful. Even with the EP manifolds you won't be making enough power to warrant much larger than 2", but 2 1/4" would be a safe bet. 2 1/2" if you really want to hear it, but the engine really doesn't make a nice noise so I would keep the volume down, if I were building another one. My muffler of choice is the Magnaflow - high quality, great flow, acceptable silencing. Dynomax makes a similar muffler but it hasn't got the same build quality.
My exhaust was designed essentially as an equal length 6-2-1 header: the three cylinders on each side merged together with all six 1 3/8" pipes being within 1/4" from longest to shortest. They became two 2" equal length pipes that made a long Y and transitioned into a 3" pipe, no catalytic converter. The 3" swept up into a round muffler, over the rear suspension and back down to level where it entered a second 3" muffler, oval this time. Then a 3" "S" bend of pipe, a nod to Volvo's standard tailpipe design of the era. All my mufflers were Dynomax, which I got for a deal, but I don't expect the sound to have changed much if I'd used Magnaflow. I expected everything to sound wonderful, but it was blatty, raspy, and annoying. Changing the headers to the EP manifolds broke up that initial harmonic that would have sounded much better with more camshaft and compression, and that turned the system into something bearable (but still noisy). The guy who bought my headers (just shipped them out last month) is putting them in a 262C and I suspect the oddfire engine will sound wonderful with them.
If I had to do it all over again, I would have made the headers a little bigger (1 1/2"), the Y pipe would have not been so much a Y as a T and it would have been much shorter. Then I would have made the rest of the system exactly the same, but in 2 1/4" tubing & mufflers. With the smaller tubing, the first muffler may have been unnecessary (it was a very tight fit, so I'd have removed that one if I could have, but with the shorter Y pipe I would have had more room to install it UNDER the car). Going from the 1 3/8" headers to the EP manifolds I expected to lose some performance but I didn't lose much - mostly on the bottom end, where the headers had a lot stronger pull - but I did get a much quieter, nicer sounding car.
That exhaust was one of my bigger, prettier fails.
Edit - oh yeah, my first version of this system looked like this:
Headers:
It had a Magnaflow 3" muffler/resonator tip thing that was quite loud, and I later replaced it with the S pipe and an oval muffler. I know I have a picture of that but I can't find it on my phone or in Photobucket. I went through a few iterations of this system trying to fix the noise - I added a crossover pipe right at the start of the exhaust system to try and break up pulses, I plated in the large V as the two pipes joined because it had developed a crack I couldn't weld, and it needed the stiffening besides. Yeah, it was a mess.