Consulted with Torfab, I'm planning on having them help me with restoring this thing once and for all. Regarding the exhaust, the nice worker there looked over my truck and thought there was a muffler leak causing my cabin fume issue.
So I took it to my local muffler shop, with whom I've had generally good experience. There's a new young guy seemingly in charge there, who seems earnest and is a Toyota fan himself. Told me about his mid-80's Toyota truck he's restoring. He seemed to take a special interest in this old FJ40, and said he wants to do up the system himself, "Because it's a classic, and to make it nice."
He checked it out himself, and confirmed that the muffler was split, but on the backside hidden from view. He initially pushed a Magnaflow muffler, which they sell a lot of. I like Magnaflow a lot, I have one on my race car and one of my sporty street cars, but but I rejected it in this application because this truck is loud enough, and I wanted it stock. I wanted a full stainless system, but he couldn't get the muffler in stainless, and said aluminized steel would yield better bends and still have a lifetime warranty. Cheaper, too. So I agreed to that.
Several days later when it was done, he called me to pick it up. Excitedly, I rushed over and had a look. It's all really good, except for where he welded up the forward section of pipe to the old rusty system, just short of the header flange. I was a bit disappointed by this, and his excuse is that the flange wasn't leaking and it was easier to weld up this way. I paid for the work, headed home, and was pleased with the quieter exhaust and lack of poisonous fumes in the cabin. But I still couldn't get over the ugly shortcut he took in welding it up.
At home, I got a closer look, and decided this new system which stopped short of the headers and utilized old rusty pipe was unacceptable. So I took it back, told him how janky it looked, reminded him how he said he'd "Make it nice," and insisted he redo it from the muffler neck forward to include a fresh flange at the header. No additional splices or sleeves. My plan is to restore this 40, including the headers which will eventually be removed and ceramic-coated. I reminded him of this as well.
I was an unhappy customer, but I don't think I was a jerk about it. Have a look. Ignore my stupid finger in the lens (I was mad!). What do you think?