It goes between wastegate and flange.

 

Have you thought about some different heads? Power will fix most things and those iron heads are something awful. You will lose weight(about 20lbs) and gain power by swapping to basically any heads. 317s can be had for $100 easy or 243s for $300 both weigh less and increase flow. The 243s would also increase compression.

 

I think head swapping could be debatable.

 

More power and less weight over the nose. Seems like a pretty one sided debate. The increase in flow will make the entire build more efficient meaning the turbo will be pushing more air at the same boost level.

Another option to keep from pushing thru the brakes is a brake upgrade such as SUV calipers on the rear. Dual piston rears should help create more clamping force and keep it stuck longer. Bet you could get the rears swaped for under $200 and only take a couple hours.