It sounds like you want something with overdrive. The cheapest way to do that without really pinching pennies is to go with a 700r4. The 4L60 is a computer controlled 700r4 basically. The computer controlled stuff is great except for the fact that it can get pricey depending on what level ya take it to. I would think that a 4L80 is overkill for a small block. I guess what it comes down to is the Drag racing thing. If you want a fun cruiser the hauls the mail, I'd stay with the 10bolt and upgrade it and put your money into a better trans. If your gonna be launching the car at the strip on slicks then you can build the th350 or move up to a th400 and upgrade to a 12 bolt or a 9". Decision time pal. Almost forgot, gears, if you go with an overdrive trans, then I'd go with 3:73 gears, if you stick with a 3-speed, look for something lower if you wanna have some kind of fuel mileage. Oh, and you can run a electric trans with the 327. Hope I helped some.
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67' El Camino: 468BBC, TH400, Grocery Getter
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