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You can do that, there is plenty of space to work it out. However IF you want to have your O2 sensors installed into the cat you will need to lengthen the wiring for the sensors. Additionally you will need to do some cutting and welding and may want to install an additional hanger.
Since you are trying to get a setup that will pass emissions but give you a nice flowing exhaust without being too loud and do it at a reasonable cost the following is an option that has worked well for me. Honda has a factory header on the car when it leaves the Plant, granted it is the not the most open/best tuned header but a header none the less. So I decided to leave the factory header in place and replace the cat with a Random Technology cat. I replaced the factory catback with an aftermarket catback (Vibrant StreetPower). Everything bolted up easily and the O2 sensors plug right into the cat and are functioning normaly with no cell. The total cost was about $875. I will likely install a Comptech shorty header at a later date but I'm happy with the current setup and it will pass the emisions test.
Just another option to consider.
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