Couple or same issue 97 Dakota, hesitation when running

Have a 97 Dodge Dakota single cab P/U, is a 2.5, 5 speed stick. Bought the truck a few months ago and knew it had a couple probs, the cat. is worn and sounds pretty bad, rattleing kinda sound, lil loud, and when I pull hills it has kinda rotten egg smell, is that affecting the gas mileage??? Bc it sucks, also when the truck is first started, after maybe 2 mins will run like crap, will have to hit the clutch and give it gas otherwise just barely runs, does that for about 30 seconds then is fine, never really changes on when and how long it lasts, doesn't seem like it has a whole lot of power but I'm used to driving my 87 silvy w/ 305 that has PLENTY so don't know if that part is just me.
Want to get to it bc been putting it off too long well that and no money, please help, Thanks!!
Jason

ALSO, took it in to have check eng. light checked and came back #2 bank misfire and O2 sensors, asked the guy I bought it from and he said did same to him and he changed plugs and wires yet still did it, and he's a reliable scorce. I cleared codes and stayed off for a couple days but think the hesitation is what is setting it off.