i own a 88 tII anniv. ed. there is a HUGE exhaust leak! sounds crazy loud. the previous owner told me it was the gasket from the turbo to the downpipe. i dont see how this gasket alone could be so loud. we are leading towards the exhaust manifold being cracked or the turbo. The turbo spools great and pulls like a champ.
-Question: How often does the stock exhaust mani crack? and does it often crack the turbo as well?

 

rotaries are louder than indy cars without an exhaust!
frequency - often

 

Put it on a rack & look for the telltale black stain.

There are two cats.
The small one directly behind the turbo is only for warm up.
If it's bad, your muffler shop can replace it with a plain pipe.

You will need the main cat for emmissions control.