Heres an interesting read:
http://drriders.com/topic2360-30.html
What scares me about this article is that the author does not see a gasket even if he takes a VERY clear picture of it

If you're really that hot in pursuit of some extra power you should maybe DIR and cut the flange off the header below the clamping ring, machine a new flange on the lathe with an inner diameter matching the port and then TIG weld it back on from the outside. If you do this right you will have a 100% quality strong weld with no significant protrusion to the inside and very little protrusion to the outside. The problem with the OEM weld is it's MIG and done from the inside likely for cost reasons.
Grinding around on a weld is a no no. It's kind of acceptable to clean off an over sized end blob. As long as it's not a structural weld.