Re: 2004R trans with 3.08 axle
My '98 C1500 has 3.08 and a 4L60E (same ratios as a 700R4) and on the highway at 65+ it is great. Around town below 55, it sucks to be in 4th gear. Barely off idle but if you want to speed up, you have to get it to kick down to 3rd. I find around town, I just leave it in 3rd and never use overdrive. I save that for the freeway.
3.42's are very ideal, even 3.73's are a good choice. With a 200R4, since the first gear is not as deep as a 700R4 and the overdrive is a little better, I would rather have 4.11's then 3.08's. I think you will find 4.11's would give you better mileage as engines don't like to be lugged.
My .02 worth.
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