00prowler,
I have a 96 GTS with TNT headers and Borla exhaust. I have run it with and without hi-flow cats.
First - there are no problems with the check engine light as the 96 computer reads the rear O2 sensor but does not use the signal.
Second - with headers, hi-flow cats are pretty loud, no cats are really loud. Without cats, full throttle in 3rd gear is just over 100db in cool damp air - or so they said after I was black flagged at Laguna Seca - my last lap of the day, I had to go full throttle from 5 to 6 just once.
Third - having dyno'ed the car both ways, there is less than 5 hp difference between the two. I would make the decision based on sound.
Either way you go, the Borla exhaust sounds really good. Enjoy.