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Muffler, replace.

If muffler has been replaced in the past, unbolt or cut off sleeves and remove muffler. 180014.jpg (13115 bytes)
If muffler is original measure new muffler against original muffler and cut pipes at point where new muffler ends.
Install the exhaust with sleeves joining the two sections.   BMW supplies sleeves that are bolted in place, creating a leak free joint. 180018.jpg (45463 bytes)
Be conservative when cutting original muffler off. It is better to cut two or three times before getting the correct distance than to cut the pipes too short to begin with.
 

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E30 M3 Repair Manual V2.7.  Copyright ©1999-2001 Koala Motorsport & Brett Anderson