Just my two cents here, but I tried the wrap on the stock header and found it made the heat stay in it, and made things hotter to a point, and I know the stock muffler wrapped was up to 800-900 degrees with it wrapped after working hard. It backfired, or would do the diesel effect after I idled it all the way down for a minute or more.
I put the stock Subaru header on it, and made all up to use the stock Subaru muffler with making the flanges so they didn't have a lot of bends, straight into the muffler, and made brackets up so it is solid as the engine is, and have had good luck, temps and all with it.
I also have a 10" fan on the opposite side which I think helps also.
I am at about 65 hours with the machine now, and have really had NO problems with the engine. Changed it over to Mobile 1 at around the 20 hour mark, and seems to run as well as can be expected.
After doing, and trying the wrap, I think it just holds the heat in more. Getting the header up 2-3" higher, so the air can flow more seemed to help, and it is even a bit quieter then before.
If you look back a few posts in this thread, think it was #8 or so, I put some pictures of what I did that seemed to help. I think the machine could still use more power at low end, would be neat to find a nice small diesel, think they had a 430 at one time that had one in it, and was a 425 size machine. Guess it didn't last, or was too expensive to put the engine in it.