Exhaust leak?
You said it is flanged...if there is no gasket there, that may be the problem (unless it's a ball flange?). Mine were slip fit, problem was I could never get the clamps tight enough, so I ended up just welding them all together.
Try tightening the bolts, using a gasket and see if that helps.
I know what you guys mean with that slip fit... that has given me fits! I have already dealt with header/y-pipe connection problems. Those were fixed awhile ago.
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