I hate, loath, and flat out despise the 700R4 tranny! I went through six of them in my Suburban. Rebuilt by this pro shop or that pro shop, junked them all in six months! I special ordered one from this place in Cali (many moons ago) and three months later I got a box large enough to be a tourqe converter:monkey: I refused to accept it and finally got my money back, I think they are out of buisness now.
I keep hearing they can be built to hold horsepower, maybe, but I know they sure didn't like towing and off roading, kicked out of OD when doing both.
I spent two hours on the phone with one builder trying to talk him into putting in a 400 for me, he insited a 350 with a lockup converter was the ticket, it lasted just over a year. I don't like them!!! Just teling my experiance with them.
I would look and see about droping in the 4R8 or whatever the number is on the new heavy duty tranny Chevy has out, I've nothing but good things about it, and they make a kit so it can run as a stand alone. Yeah it's expensive at first, but figure $900-$1400 times six, it's cheap then aint it?
Also, unless you are runnin 38" or bigger tires, I'd drop the gear ratio, a 3:73 or 4:10 wont be that noticable in towing, but help the mileage quite a bit! I was running 3:42's with 33" tires and had plenty of power with a built Small block 400.