97 m3 engine ticking - loss of power

[liquidryder]

97 m3 engine began making a ticking noise which got progressively worse. Engine light has since come on and car exhaust sounds very loud (as if hole in muffler). loss of power during acceleration (regardless of rpm). Recently (1200mi ago), installed a ucc exhaust. Figured I would start by checking exhaust to make sure properly installed, new fuel filter and plugs. Any other suggestions?? Thanks-

[Jeron]

Sounds like an exhaust leak.

I had a broken weld at the header flange that occurred after removing the exhaust to replace the clutch. I probably put too much stress on the exhaust during the process.

Yours could be a broken weld or a blown seal.