Headers.....

What I'm more concerened about is that I was told that because the cats were moved that its against federal law.... what happens if I get a nosey cop?

you get a fine. here in cali its like 1000$ per cat. so yeah, if you remove 4 cats, you get fined $4k.

IMO id get under the car with a rachet and start tightening bolts. you know what side (bank) the leak is coming from so now narrow it down and tighten up. Headers is one of the worst mods you can do, everyone who ive known to do headers has issues (except a few in the 4cyl crowd, in which case its "header") with leaks. my boss has a older V6 slomaro, the 2.8 bored/stroked to a 3.4 with all the boltons and is always having issues with headers. IMO you can spend money elsewhere to get better gains, and then deal with headers when they become a issue in performance.
 
Thanks for your advice. By the way, since moving the cats is against Federal law, worst case senario, anyone know what happens if I get caught? Is it just a fix it? Or worse?

you won't get in trouble, worst case scenario you get a noise pollution ticket, $93 here I think, and might have to go to emmisions, so yeah save your old pipes for that purpose.

if you don't even have emmissions in your state then they probly won't even care enough to go that far.
 
In the case of your emissions testing..... If they just hook up to look for codes and your car throws none, your ok. If they do a visual inspection and see that you modified the exhaust before the cats, they can fine you accordingly and make you put the original parts back on. Now whether they will actually do that is another story but legally you are not supposed to modify any of the exhaust system before the cats unless you are replacing a defective part and I believe you are supposed to use the factory parts in this case. It would really be tough for the emissions places to identify what is stock and what is not on every car so you probably don't have much to worry about.