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the old theory remains, for balanced flow. you can't beat a 2 into 1 system. with true duals you will notice less low rpm torque. the torque with the two into one is better all around. d&d fatcats will be my next exhaust system, or the rinehart 2 into 1. my current rinehart slip ons work just fine for now though.
It basically boils down to: Do you want the best performance you can wring out of it? In that case, it's a 2-1, hands down. The only drawback is the "unbalanced" look of 1 pipe from the rear.
If you want "good enough for touring" type performance, without sacrificing looks, then true duals are what you're after.
As far as losing torque? I just put my '07 on the rollers over the weekend, and pulled 72hp, 83tq. Not too bad for a 96", I thought. All I've done is Vance and Hines Dresser Duals (primarily for heat reduction), SuperTrapp mufflers, SE air cleaner and a PCIII with a canned map.
My original setup was the XIEDs (junk, IMO... I gave them to a buddy of mine), and the SuperTrapps. After swapping to the SE and PCIII, I noticed a dramatic difference in driveability. About 2 months later, I put on the Dresser Duals, I noticed NO loss of low end torque...none, zero...
My plan now is to do a 103 (have all the parts...just trying to make the time).. sticking with the exhaust I have now. Will I lose some HP as opposed to a 2-1? Probably... but I ride a motorcycle, NOT a chassis dyno. I could care less about "how much horsepower/torque it makes" at a gathering (most guys lie about them anyway).
On your basically stock bike you will suffer no loss of torque with true duals. Just one of those rumors that's now considered a truth. If you're building a high performance motor (cams, bore/stroke) a 2-1 can be beneficial otherwise it's a toss up. I've used both set ups on several different bikes and currently have a TD that runs as well as any 2-1 I've ever had. It's done so stock as well as modified (cams, bore/stroke and more). Go with the look and/or sound you want and then tune it for that set up and you'll be happy.
Well heres my $.02, I've had both, heard all about the 2 n 1 so I bought a fatcat, put it on without a retune and lost bottom end like crazy, ran decent mid, I had V&H tru duals with rush mufflers and 2" baffles before the cat, after the cat was on I did some head work that a guy totally screwed up my heads but it dynoed 86hp and 84tq, that sux, bought some heads from WFOLarrys and reinstalled with some new BUB7's tru duals and re dynoed and it did 84hp and 95tq, better look, better sound and better tq, also the hp from the cat was at the end off a run, like 6200 rpm's, not where you will ride at, go with the BUB7's and you will be pleased.
Now I'm not say'n that the 2n1 won't make power, it just didn't in my case.
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