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Dollar for dollar your best bet is replacing the cam. If you do the work yourself you can do the cam upgrade (cam, hardened pushrods, valve springs and gaskets) for under $1000.00.
It will transform your car. You can pick up a 3.42 rear and a used T/C off the forum and save a bunch. If you can do the install, your way ahead of the game. Then a simple retune and away you go.