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ZD75blue:
I'm led to believe that it is the T5 that has the weak third gear. One of my buddies has a "fox body" Mustang with a 347 stroker engine and he has gone through 2 transmissions so far. The transmissions were fine but he kept complaining about third gear. He banged third gear too hard one too many times I guess. His complaint was that when third gear went out on him, it wouldn't go into third gear without grinding like mad.
Stay away from the T-5 espescially pre-87. The Ford version is stronger than the GM ones. The problem is that the case at the input shaft is very thin and when you put it in third gear, the power pass from the input shaft gear to the cluster shaft gear and then the third gear assembly that is the closest from the front of the transmission. In other words, all the force are concentrated in the front of the case in third gear and that cause the case to crack and total failure. Ford have almost the same internal part but the case is stronger.
I personally blowned (total case explosion) 3 t-5 with a 400 p.c. small block in a camaro 78. At 50$ each, I didn't mind but they are junk.
In my opinion, the tremec is the way to go in your price range. It's so nice to have an overdrive when cruising.