I have been using a Walker 17783 on = our '88 waterboxer for over a year.  It is accompanied by a 2.25" = catalyst from a 16V Scirocco and 2.25" tubing as a tailpipe.  Yes, the = longest tailpipe possible is important to keep the noise level down.  Ours = is growly at idle, and makes a vocal hum at speed.  I like the sound = that engines make and to me it's music.  I have had cars in the past = with obnoxiously loud performance exhausts.  The Walker Super Turbo is = much better behaved.
 
Regarding performance, our '88 also = has a Jacobs "Omni Pak" ignition amplifier.  Our local VW wrench has = asked several times after servicing the Vanagon "are you sure that's all = that you did to the engine?"
When given to pushing a bit she'll = pass traffic up significant hills at 80 mph. 
 
The "pea shooter" stock = exhaust is begging to be changed.  Go ahead!
 
Gary