With the TKO I would go no higher (numerically) than 3.50 or 3.70. I switched my 3.89s out for 3.70 also due to the TKO. With that kind of power and the short 1st gear of the TKO, this is what I would do if I were you. One reason I wished I woulda done the T56 in hindsight, but oh well.
And since it's a street car I would do the .64 overdrive - same as I did and for the same reason.
Anthony's setup of T56 and 3.89 is an ideal setup to me.
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2004 NASA AIX Mustang LS2 #14
1964 Lincoln Continental
2014 4 tap Keezer
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