Did anyone give you a reason for reccomending not to use the TH-350? It's a direct-drive trans, no overdrive, but it's about as reliable as a sledgehammer. There are adapter plates available to fit the back of the 235 block that will let the 350 bolt up to it. Of course, the early 700R4 without the computer control will fit the same adapter if you need an OD gear.
If you want an OD manual shift, the S-10 trans is a pretty good choice. Most of them need a little modification to the input shaft to work properly, or a spacer plate between the trans and the bellhousing is another way to handle the slight length difference of the input shaft.
Jerry