I am ordering a cut-out soon and wondering if I should put it right after the converter or right before the muffler. Which placement will sound better and which placement will deliver more performance?

And the stock LT-1 Intermediate pipe is 2.5 inches... right?

 

put it right before the rear axle, forgot the size

 

if you still have the cat, putting it before it will yeild the most hp gains. but it will be ungodly loud and the interior resonance will be deafening (track only)

putting it just before the axle or just before the muffler on the back side of the axle will yeild a much better sound (daily drivable for most people depending on cops) and will probably only lose you a couple hp