Doesn't look bad overall.
- Hard to tell from the photos but the hanger bracket on the rear of the muffler may need some attention. The muffler on my 80 was otherwise in good shape so I removed it and welded that rear muffler hanger bracket back on then reinstalled. No issues in the 80k miles and 6 years since that repair.
- Originally there were flanges that bolted the pipes together between the two cats. Looks like that connection was replaced with a piece of pipe welded in. Nothing wrong with this fix if it's not leaking or showing signs of cracking/failure but it's a change from stock.
- You should specifically check all of your muffler/exhaust hanger bushings. Unless they've been replaced I'd guess all of the rubber exhaust bushings need to be replaced now. Keeping the exhaust system secure helps avoid breaks/leaks/failures.
- 17567-17010 - the bushings, there are 3
- 90179-06007 - the nuts, there are 12
- I don't see any signs of active leaking which often show as soot streaks running down from the leak or similar. With the engine idling you can typically feel larger leaks blowing on your hand and for smaller ones you can have someone apply some back-pressure to the system (partially block the tailpipe) while you then spray soapy water on joints/etc. to see if you spot leaks. This is better done when the exhaust isn't hot so that the soapy water doesn't just steam off and so you don't get burned.
- Even though the joint/flanges after the cats are eroded a good bit I wouldn't mess with them unless it's actually leaking. You can fix that when/if it starts leaking.
Maybe the fumes your wife is reporting are just from the normal tailpipe emissions? 80s run a bit rich (extra fuel) on startup when the cats are cold so this is definitely possible. Ruling out exhaust leaks is a good idea but it seems like you may not have any large enough to cause what she is reporting. A few other smell sources that she may be noticing:
- If your rig is running excessively rich the exhaust will smell more before the cats heat up and can burn off the excess. What's your MPG typically? Not trying to open a can of worms here but if the smell is only noticeable when cold this is a possibility. Could need a tuneup, new o2s or may just be normal 80 series operation. Track your mpgs for a few fuel tanks and then see if they compare favorably to what folks report but keep in mind driving style shifts the numbers a lot.
- If you grease your rear driveshaft it will sling the excess on the exhaust and this will cause burning oil smell when the rig is hot but is likely not an issue on cold start though.