Cutouts should definitely help. Every bend, curve and obstacle(i.e. catalytic converters and mufflers) in your exhaust system causes backpressure which requires energy to push out of the tailpipe. This energy comes directly from your engine and instead of being applied to your wheels its used to push out exhaust gas.
Where are you going to place these cutouts? Placing cutouts before the catalytic converter is quite illegal from an environmental standpoint, but then again placing them after the catalytic converter removes the mufflers which is illegal from a noise standpoint, so we'll assume legality is not an issue here. Placing cutouts before the catalytic converter will also cause computer fault codes. However certain companies do sell circuits to fool your car's computer. One such example is o2simulator.com, I have never used anything from this company so I in can in no way vouch for them. Will this cause your air/fuel ratio to be off? I honestly don't know as I've never done this on a computer controlled vehicle.
The gains you will see from cutouts will depend on how restrictive your exhaust is currently. Obviously a high flowing exhaust will see much less improvements than a choked off maze leading to an economy muffler. I'd think you'd see better gains from a good set of headers but I'm just guessing on that one.
My only experience with cutouts comes from my personal experience with them on my 67 Nova. I race it every weekend and with the cutouts open it will run 7.40's in the 1/8th mile. Through the muffles it runs 7.70's. Three tenths may not seem like much but believe me, its a huge difference.
I'd like to qualify my statements by stating the above numbers are for a 350 (5.7 liter) engine. For a 1.6 liter engine, the gains may very well go unnoticed.
Here is an interesting article on catalytic converters.
http://www.importtuner.com/features/0610im...oval/index.html Assuming their tests are accurate, it looks like a no brainer on where to place your cutouts in relationship to the catalytic converter.
This post has been edited by ShofRacing: May 25 2009, 11:46 PM