I just picked up my new TH-350 today from the tranny guy. I had a reverse manual valve body installed along with a total rebuild.
Benefits of the manual valve body:
1) NO FREAKIN MODULATOR VALVE! Meaning, nothing there to fail in the automatic portion of shifting, and no stupid vacuum lines to leak or tear off on the trail.
2) No detent cable to wear out or become unadjusted. There's no longer an automatic passing gear, so the hole is simply blocked off.
3) Pick a gear and go. Whatever it's in, it's there. Mine has a safety feature installed that will let the tranny "freewheel" if it is down-shifted from 3rd to 2nd, meaning no 10,000 RPM accidents or tire flat-spotting squeals as the tranny tries to slow the truck down.
Benefits of a reverse valve body:
It's only REAL benefit shines is if you have said manual valve body installed. It allows 1st gear and reverse to be a close pattern. See below
Factory setup (TH-350):
P
R
N
3
2
1
Reverse Manual Valve Body:
P
R
N
1
2
3
See, for offroad use, it allows quicker and, should be, less missed shifts.
It's really all preference as to whether or not you use the reverse pattern with the manual valve body. There's no real benefit to it IF you know what you're doing other than keeping it simple and straight-forward.