Just be very carefull with the tuning. Cobras almost never blow head gaskets. It usually goes the other way. (Piston)
But as long as you have plenty of fuel it will take it just fine. Personally I'd run a dry kit and tune it a little rich to be safe when spraying.
As far as gears: They do wonders. I have 4.10s and with my other modificaitons I actually get better gas milage then stock. Since they are only about 5% different from each other, I would say go 4.10 or 4.30.
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