actually the $1000 is anywhere in the US....Federal Emission laws...state laws can add more....they most often go for the shops though to make an example, and the fines are up to $10,000 there....
as far as teh size issues...an exhaust shop can make it work with reducers, or proper sized flanges. the direct fit cats though will bolt right in as they are designed to be a direct replacement for the stock cat.