From my own experience, you will want mufflers at the rear or as close to the rear as possible. I started out with two bullet mufflers and turn downs after my x pipe - obviously it was loud. Next I added pipes all the way out the back and some 3.5"x 12" tips - it cackled like a truck and felt like it lost torque. I replaces the tips with 6" magnaflow cans. I was skeptical when they showed up at the shop since they were 3" in and out and are a straight through muffler, but I had them installed and I love the sound. It's mellow at idle and while cruising down the highway but it sounds awesome when I've got my foot in it. I also got back the torque it seemed to lose with the pipes and tips.
My entire system consists of: stock f body manis, 2.5" pipes running to a 3" x pipe, two 4" bodied bullets running back to two 6" bodied magnaflow cans in the stock locations.