Here's a pic of the lagging.
http://i221.photobucket.com/albums/dd45/HomeCrafter/IMG00212.jpgNowadays, its made of woven fiberglass. The discoloration was caused by the VHT paint underneath burning off. Supposed to be good for 1500 degrees. Guess it gets hotter under the lagging than I thought. With the "mummy" conversion, I can drive on the highway for an hour, stop, and put my hands right on the headers. For that matter, the pipe all the way back, as it is wrapped as well.