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Originally Posted by needspeed
Going through the same process myself. I'm in CA and need to keep the CAT, so I'm sticking with stock heat exchangers. However, I'm looking into the Fabspeed sport CAT and M&K light weight muffler.
Definitely going down the 964 cam route. Plus the Patrick Motorsport RSR style rocker and sport spring set. Plus ARP connecting rod bolts and head stud kit. Plus light weight clutch housing to reduce rotational weight. Plus new Bosh injectors for better combustion. And Plus chip (maybe club sport).
I'm hoping this will allow the car to rev quickly and comfortably to 7k RPM then sustain it. I like cars that rev for primarily the street and occasional track duty.
I'm still debating whether it's worthwhile going to 3.4. To get full benefits, many claim it also requires twin plugging. The cost for material and labor for 13ish HP gain is extremely high.
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My engine is very similar to what you listed, i went single plug 3.4L, 9.6:1 c/r, 964 cams, titanium retainers and springs and a few different exhaust setups over time. Also a KEP lightweight pressure plate. With M&K muffler and a euro pre-muffler my car made 242whp / 225ft-lbs on a Dyno Dynamics; this dyno based on other friends cars is optimistic..i think i am realistically around 230whp. A well setup 3.2L is probably around 210-215whp. The 15bhp difference is marginal but i find the 3.4L has better low and mid range torque...maybe this is attributed to the 964 cams though. Twin plug is where you really can take advantage of the 3.4L but unfortunately i have to deal with smog and 91oct so the 9.6:1 c/r was a necessary compromise. Whether i would do it this way again is debatable, but i needed new pistons and cylinders regardless; labor was actually no different. So it was just the cost difference between 3.2 and 3.4 p&c's.
If i were to do it again, i would go twin plug 3.4L which would allow higher compression. Cost really goes up when you twin plug though... extra machining to the heads, twin plug distributor and tuning.
Shameless plug, i have a Monty muffler for sale if interested

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