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1. Mine does that as well - the fuel gauge is not very linear in response. At times, the gauge will read lower/higher than it should. Just keep an eye on the mileage, and you should be safe. Not much you can do to "fix" this. Just make sure the chassis grounds are clean, as electrical noise in general can cause you all sorts of headaches.
2. Muffler itself generally does not require a CARB EO sticker, as it doesn't change any part of the pollution control bits on the car. Some places will frown upon any non-OEM part - but the muffler itself is not enough to "fail" you outright. Noise might be another issue - limit is 95dB, that muffler can be way louder than that. That should not affect SMOG, but will raise the attention of any nearby police officer. If you run another resonator before the N1 muffler, that should quiet it considerably. Up to you on that - you could always run to a pick-&-pull place and get an OEM muffler or get a quieter aftermarket one welded up. N1 is just begging for problems unless your friend is giving it away to you.
3. Could be a number of things, slipping serpentine belt, squeaky sway bar bushings, strut noise, contact between wheel/tire and body, dying P/S pump, etc. Post up a vid, that will help a lot.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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