The 4R70W will handle up to 400 hp/400 ft #'s. I don't think that beefing up his trans is something that needs to be done right away.
I'd start with gears, high flow cat H or X-pipe, and a bigger MAF. They should help drop about 4 tenths off your 1/4 and will still be used if and when you add a power adder. If you don't plan on a power adder, then your second round of mods you can throw on a set of underdrive pulleys, a catback or mufflers, and a chip.
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'97 T-bird LX 4.6L 2V, auto
SVO heads/intake, Vortech T-trim, front mounted intercooler, blower cams, Cobra crank, Manley H-beam rods, JE pistons, Aeromotive fuel system w/ 42# injectors, and much more
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