Guys at "the exhaust shop" (wont mention business name) said that I should put on a 2 1/2 inch pipe from the engine back with no muffler and a mechanic I know said I should have a muffler for back pressure etc.
any suggestions?
That depends on the engine as fitted, and its intended purpose!!!!! You will need to be clearer on its use and modifications.
If it is going to be used on a public road, then a muffler is needed for the vehicle to be roadworthy... Most vehicles have to be under a 96Db noise limit, without a muffler, this is NOT possible.

A muffler will also aid in backpressue which a standard/slightly modified engine needs to operate efficiently. No backpressure, and you will lose power and waste fuel.
If the engine has been highy modified and will only be used for competition and NOT on public roads, then a muffler is not needed.

This reduces backpressure, which modified engines have been designed to run without. This will only work with a large overlap cam, highy modified heads (port matching, bowl enlarging, etc), high compression and a free flowing exhaust.
Determine what you want to do with the vehicle, wheter road use or competition, then seek advice.
