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STS systems are designed to work WITH a stock cat in place. even at that they start to spool around 2500, which is typical of most of the systems on teh market.
water is also not really an issue unless you drive through 2ft deep puddles routinely. teh turbo and the intake filter sit high behind the rear firewall, just like the stock muffler.
oil line running the length of the car is a problem? the fuel feed and return lines are that long but no one minds.
the only problems that i have heard about the kits are that the uning is very conservative. you really shoudl go get a custom tune after the install to make it perform best, and the loss of subframe connectors. you can still run them, but you have to make a custom piece for the drivers side.
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