G'Day
As you can see from my avatar I have a Bassani 2-1 with a short muffler. It is loudish however it sounds great & the performance gain is good as well.
Have you tried re-packing the muffler?
Wow... sounds bad. Heat wrap will definitely damage header pipes over time, can even cause them to crack. From the research I did, this pipe should be loud but not that loud.... like already said, you should try re-packing the baffle. I also have the shorty meg version of the road rage 2-1 pipe on order and about to arrive any day now. I bouhgt mine new, so no issues there. Let us know how you go.