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Doesn't sound bad.
One of my old friends says that he has noticed increase in mpg (albeit very slight, still an increase)
Is this a common result, or just him talking about something he knows nothing of?
I cut off the muffler and put a high flow air filter in at the same time and my MPG did go up a little. You'd just have to keep your foot out of it. Right now I'm getting 30-32 with mostly city driving and 35-38 highway and I have the 3 speed trans.
Doesn't have much power compared to what? The 5.7L Hemi? Having two 5.4Ls in the family and having friends with 5.7L Hemi, there is a difference (as there should be when the 5.7L Hemi has anywhere from ~50-100 more HP depending on the 5.4L), but it sure doesn't feel like a major difference when you are driving them. Both the 2V and 3V 5.4Ls have just about the same torque as the Hemi, so unless you are seeing which will win a rolling race, they are going to be just about the same off the line.
Regardless, that's enough thread derailment in an exhaust thread.