1st project. I am running the 700R4 tranny with the stock 3:90 rear.It is a very good combination,for performance and economy,. 20 MPG.I dont know how the 3:08 will perform with the overdrive 700R4.A 3:73 ,3:90 or even a 4:11 will work out just fine with the 700R4.sounds to me the 3:08 will hurt a lot in performance.Perhaps someone else out there has used that combo,that can give you some more info.The 3:08 is a good choice for a 350,or 400 hydramatic.I had my axles plugged and drilled for 5 bolt 4 3/4 wheels,and also the brake drums, at Moser Engineering in Indiana. Cost was very reasonable.They have a web site with posted prices.