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Man, with all of that I would go ahead and do the swap to a 2004R, take advantage of the HP bump with the deeper 1st gear and the overdrive. Whats annother $1k?
i have run engines similar to that with a stought but streetable 280 magnum cam. you can have that 350 turbo beefed and built and it will hold up to that motor but you will need to use a stahl convertor to avoid it dieing at stop signs and or lurching, I used a tci 3000-3500 stahl with similar set up.