GOT IT!
When I did the exchange on the engine one of the header washers that holds the intake and exhaust manifolds to the head got caught inside the header exhaust unnoticed. When I started the car initially it the pressure blew it threw the header and it fits perfectly into the opening in the muffler. The 1.25" washer fits perfectly into the 1.5" opening in the muffler reducing the exhaust flow to less than .5".
I replaced the muffler and it runs like a top.

I actually heard a suspicious sound when I started the engine the first time, now I know what it was.
Drove it out TN hwy 129, the tail of the dragon, last week and had a blast, shes a head turner for sure and pleasure to drive.
Randy Raley
Knoxville, TN
rraley@nxs.net