I would tell you to fix your gearing problems first or even the low power 350 is gonna kill the 700R4. What gears and tires do you have now?
305/70/16 and 3.73's. It works out the same as the stock tires and 3.42 gears. It actually makes pretty good power and everything is fine unless I push it past 65mph on the highway. Any faster and the convertor won't stay locked up because it just takes too much throttle to keep speed. More power would mean less throttle and a locked up convertor.
On this last trip, I got better milage in town than I did on the freeway in the hills. This was with 5 adults and three kids, plus the associated luggage.
First tank was 11mpg, 55-65 mph, mostly hills and mountains
Second tank was 13mpg, city and around town
Third tank was 11mpg, 65-75 mph, mostly hills and mountains