So I talked to me exhaust guy today (the one who built my custom headers for my sandcar), and explained to him what it had done... and he said most likely my short commute to work (4.25 miles), is what killed it... the condensation from the exhaust created acid water, and then in turned killed the muffler...
That would make since... so he said to fix it, we are going to weld back in the replacement system, and then drill a couple of small holes on the bottom back end of the muffler so that water can drain out...
Basically my exhaust never got hot enough to vaporize the water completley.. so it just continue to eat from the inside out...