I have owned 3 vehicles with the aluminum powerglide. A 62 Nova with the 194 six, a 63 Bel Air with a 327, and a 68 Bel Air with a 283.
The only one I had any problems with was the 327. Just not enough guts in the tranny to handle the engine. You said your powerglide was behind a sbc, it should have enough for the 292.
For long term use I would go with the 700R4 and 4.10 gears. That will give you good acceleration and 2.87 overdrive.
