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Make sure to bring your own jar of vaseline to the dealership if you go this route as an oem cat will cost a few hundred bucks. You can't beat $50 shipped for a Car Sound/Magnaflow from ebay + $8 for a peice of 2.25" exhaust pipe to make it "direct fit".
I just bought a converter from Performance Curve with free shipping. I also got a Force Pro-Series muffler (similar to flowmaster) from Jegs for 39.97 shipped. My converter was for a 96 XJ, but according to Summit, a 96 & 98 XJs Catco direct fit converters have the same part no. and the above converter should work with your 98. I went with the Magnaflow due to price plus it won't cost that much for a muffler shop to install it and I need new exhaust from the head pipe back.