I hate SMOG and hippies equally, but the cat does do the environment good. If you can avoid it, please don't hollow out the cat. Check your timing (the exact same thing you're describing happened to me, it was a loose disty bolt), and shake the muffler. Usually if the cat's starting to blow out, and clog things up, you'll hear things rattling in the muffler. Take a good look under the hood and see if anything's been accidentally unplugged, or looks loose. If it's running "normalish", no smoke coming out the rear, no sludge in the oil or anything, I'd doubt it's a blown head gasket... but it could be. Could also be a failing fuel pump, clogged fuel filter, or something not right in the carb.