there are three cats all inline on the first gens. You only need one. And it will be a great investment. If they are the orgionals, then they need to be changed.
If you don't want to spend the money on headers, get some second gen manifolds. they flow better, and you can port them to flow better.
By the way, if you want more torque, change your gears first. It's cheap, and makes it easier on your tranny. You will notice later mods easier in the butt dyno. Just changing gears I bet you would shave a second or two on you 1/4.
Also pay attention and talk to sales guys about how your mods will effect torque. Alot of mods (like 2.5" pipes) make more HP at higher RPMS, but they also move your torque curve higher up the RPM scale. so you will have less in the low end. Toque is what gets you going, you want that at low RPM.
I would do this order, gears, custom exhaust with high flow cat and gen 2 manifolds (mild port maybe), TB & MAF, chip, maybe a Compcams, and maybe a mild port job on intake and heads (not to make them bigger, just flow better).
I emailed Bama chips and he said that the first gens don't benifit as well fron re-chipping as the later models. There is just less that he can do with them. because the software is better in the new ones.
"EEC4 is like comparing Windows 3.1 to Window's 2000, yes it can be used and work well but the new operating system is much better. They can be upgraded and used, heck I've got one guy making 284rwhp and 450rwtq from a OHV 4.0 in a 93' Ranger, but it's the wait that can kill ya.
Sorry, Doug."
so I'm just sticking with the Jet chips or something. They are cheaper and hit the fuel curve and ignition curve fine.