The AOD lets you get away with using more agressive rear end gears (much more agressive) which translates to better performance. If you opt for conservative gearing, you will end up with much much better gas milage. Here's the calculator I used to figure out my gearing and tranny:
http://www.4x4cyberstore.com/website/rpmchart.html
As for mods, I recommend a 3K stall at least (lockup) and get a lentech valvebody. One of their valvebodies allows 3rd to operate in non lockup mode so you get torque multiplication in 3rd as well and locks up in OD (strip terminator?). It'll run you 500-600 bucks. The transgo aod hp is ok, I have one. That'll run you 70 bucks.
For durability, kevlar bands and a hardened lockup shaft are a nice addition and I recommend an A or A+ servo to extend the OD bands life. Make sure the TV cable is adjusted properly or your AOD wont last.
Good luck!
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91 GT Carb conversion, holley 600 double pumper, edelbrock performer intake, FMS "C" drop springs, march 1000 underdrive pullies, crane 1.7 roller rockers, GT-40P headers, bassani x pipe, american thunder catback, FMS 4.56's, msd aL6, trunkmount battery, A/C eliminator kit, 3000 stall tci streetfighter, AOD with transgo kit, A+ servo, 300M hardened lockup shaft, kevlar bands and 28,000 gvw trans cooler, 3 core radiator, 300 lbs stripped with a full interior
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