Exhaust pipe not fitting and torque spec for muffler flange

[randCorolla]

I bought a resonator pipe and muffler.  The nipple at the flang of the pipe that is facing the muffler is the same size as the muffler pipe, so the nipple does not slide into the muffler pipe.  What mod should I do?  Can I cut away the nipple?  The pipe came with a metal ring gasket. 

What is torque spec of the two bolts holding down the flanges?

Thanks.

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