[Jtrux]

For starters, yes the 700r4 can handle the power. I know that an overdrive would be cool but I personally don't think you'll be needing it if your just cruising around town, stop and go driving. If you plan on alot of highway miles, cruising to shows in different cities and such then an overdrive might be worth it but it's just one more expense you'll have to deal with. A friend of mine from the board, Critter, has stock 3.73's and 35's with a th350 and it works well for him but he's planning on going with 4.10's to help move things along from a stop. 4.56's should work well for you with 37's.

As far as the axles go, 3/4 ton axles do offer alot in the form of braking. Bigger rotors up front and bigger in the back. The rear will be a 14 bolt full floating axle if you're looking for a big, cheap axle with tons of aftermarket support. A disc brake conversion is cheap as well. You can upgrade the front 6 lug dana 44 but there's not a whole lot you can do for the stock 12 bolt cheap.