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Time For New Exhaust



So yesterday I changed my plugs and fuel filter (1996 Jetta GLS).  While changing the fuel filter I noticed that my exhaust is well on its way to rusting out.
 
Someone correct me if I'm wrong.  Exhaust gasses flow from the catalytic converter, through the resonator? and then through the muffler.  Regardless if this is the correct nomenclature, both will need replacing soon.
 
So, my question for the lists is:  Do I need to replaced both (can I omit the resonator?).  And what can I put in for a performance exhaust that won't break the bank or sound obnoxious?  Although a slightly meaner sounding exhaust is fine.
 
Troy Rossmann