Differential, Transmission & Motor Combo Opinions Needed

[JJanzen]

For the last year and a half, like a lot of us, I have been collecting parts to re-do my 72 SWB Cheyenne Super. I have come to the conclusion I have so many parts that maybe I should just build a new truck. So, I purchased a new shortbed frame and am having a lot of the parts powder coated and/or replaced. In cleaning up the rear end, I looked up the code and found that it is a 3.07. Here's my dilemna, I purchased a slightly used (200 mi.) HO 350 GM crate motor (330 HP) and my initial thoughts were to put in a 700r4 tranny. Now that I know I have a 3.07 rear end I have read and heard that combination isn't a good one. I would love to hear opinions on which way I should go. I live in the city and most of the driving with this truck will be short interstate (25 mi. plus/minus) and just cruising on city streets. One other thing I might mention, I am at 5280 feet above sea level.