Thanks for the replies. I guess this takes me to another question. I have a wide ratio Muncie 4 speed in the truck now. Would going to the 3.38 rear ended gear work ok with 1st gear on the Muncie? My debate is whether to rework the rear end or change transmissions. I want to keep the 235 either way.
Several factors will determine how the truck will drive. What is 1st gear on the Muncie? What tire diameter will you have? Since 4th gear on your Muncie is 1:1 I think the 3.38 rear might be ok, but not enough to be in a "happy place" when driving 70 MPH.
Use this
RPM CALCULATOR to calculate the RPMs at any speed, but you need to know the different variables.
For an example, I'll assume you have a 28" tall tire and a 3.38 rear diff. Since the Muncie 4th gear is 1.0, your engine RPMs will be 2636 at 65 MPH with a 28" tall tire. Not ideal but you could live with that if you never plan to drive 70 MPH. At 70 MPH the RPMs would be 2839. If your Muncie has a 2.95 1st gear, I think your acceleration in 1st gear will be poor with a 3.38 rear diff. and 28" tires.
For better performance, I'd recommend getting an overdrive transmission with a 0.73 5th gear and leave the rear diff the same. If you currently have a 3.90 diff, 28" tall tires and install a 0.73 OD tranny, then RPMs would be 2221 at 65 MPH and 2391 at 70 MPH. You will have much better power in 1st gear too.
When considering a T5, you must decide what things are important. Do you absolutely need to keep your cable speedometer operational? Do you want the shifter to come up through the floor in front of the bench seat? Many options exist but not all are easy to solve (cheaply).