Closure
It's been months since I started this thread and I thought I'd close it out. Final outcome: replaced the Y-pipe and all is well. As the noise evolved, it became more apparent under load. As suggested by several on this thread, and confirmed by Trevor, the catalyst had broken loose in the converter.
Buying the Y-pipe: A few options available for the part itself. Anywhere from $500 - $1400. The $899 part from Rovers North was recommended, as it was less restrictive than the original. Unfortunately, it's been the summer from hell and I've blown $6K on home repairs, so I went to Nathan for the $500 part. Made in Canada. Fit perfectly.
Removal of Y-pipe 96D1, YMMV :-Night before, soak all the nuts and bolts with Liquid Wrench
-Remove ignition wires from the coil pack
-Remove the cooil pack bracket (4 little nuts)
-Disconnect the front O2 sensors (each has it's own multi plug under the coil pack)
-Disconnect the rear O2 sensors
-Remove 4 bolts holding the front swaybar, let swaybar swing down (watch you don't get your teeth knocked out !)
-Loosen 6 bolts at the Y-pipe-Exhaust manifold junction. I removed 4 and left 2 to hold it up there.
-Remove the 2 bolts at the other end of the Y-pipe where it connects to the rest of the exaust. Mine were so rusted that I had to cut them off with a recipricating saw.
-Remove Y-pipe. My gaskets just dropped out.
-With the Y-pipe removed, I transfered over the O2 sensors making use of some anti-sieze compound. These also came out very easy.
-Instal the new Y-pipe.
Comments:
I was most concerned about the breakage of studs at the exhaust manifold, especially since I had tightened them trying to diag the problem. Surprisingly, they came off intact. 2 studs actually backed out with the nuts, but no broken parts.
O2 Sensors: I considered replacing these, but my OBDII s/w said they were still OK and I was seeing no codes to the contrary. If they fail later, the anti-sieze should make it an easy fix.
The hadware at the back end of the original Y-pipe was a freakish thing that had no bolt head but rather an end that fit flush into the Y-pipe flange. I don't know if this harware could have been reused if it wasn't rusted to hell. The new Y-pipe had no such hardware, just the free-floating flange. I replaced mine with common bolts from the auto parts store.
Gaskets: It was a real bitch to hold these in place while trying to move the Y-pipe into position. I ended up using a scrap of duct tape to temporarily hold the gaskets against the exhaust manifold. Once I got the Y-pipe up there, I installed one nut on each side (loosely) and carefully pulled the tape out from in between the parts.
Thanks to all that responded, esp Trevor, for the good advice.