Bug No.1 - Just adjust the pipe position by clicking it with the right mouse button.
Bug No.2 - The car fits most of the Honda engines, like the Defiant's Series K, SOHC Honda, BB's K Series and etc. (Don't try to install blocks bigger than those because it surely won't fit. That's pretty obvious.)
Bug No.3 - Do the same thing you did with the exhaust pipe in Bug No.1