There are a couple of reasons for your issues. Basically the Dan Moto exhaust is a loud, hollow, empty can, so it is not baffling any noise like the heavily baffled stock steel can. Believe or not there is some popping on decel even with the stock can, you just can't here it.
A lot of the the popping can be controlled by not closing the throttle completely slam shut. Roll off the throttle smoothly, doing so prevents causing a lean condition which is the cause of the popping.
You may want to do the Kleen air delete mod. (removing the kleen air system) if the backfire or popping is too bad and at least shim the needles with at least 2 washers each, which will make the bike slightly richer where it is needed. Also getting the baffle for the Dan Moto exhaust will help reduce some noise. As far as the melting of the carbon fiber goes, it seems to be happening whether the baffle is inserted or not on few of the Dan Motos, most have had no problems.
Last edited by Dablue1; 11-15-2012 at 10:47 AM.