Brett,
I'm just curious; Is this "old engines won't run well with a muffler" thing similar to "diesels won't run well with a muffler" that we also hear so often?
Of course, it can be a mechanical problem too, mounting the muffler in an old engine without distorting its fits can be difficult.
If simple expansion mufflers cause problems as they restrict gas- and heat flow, it may be worth checking the recent development work done in class F2C (diesel).
They (mainly Robbie Metkemeijer & co.) have another aproach, a minipipe that delivers desired effect (positive pulse, neutral or negative pulse, whatever the engine likes). Unwanted frequencies are then filtered with side resonant chambers, kind of Helmholz resonators.
At best they have no effect on engine run and they are very simple to make, much simpler than my explanation.
It just requires some understanding of acoustics.
The difficult part with old engines with their inefficiensies may be to determine the spectrum that comes out of exhaust port.
Enclosed is a scetch of our .77 muffler. It is quite neutral in 6800...7000rpm range.
Lauri