Registration and Posting Agreement
If your engine is a 350 and is efficient, meaning you get decent mpg than a 3.42 would be good. OD ratio is .73 which would put final drive around 2.52 or so. If you have a so so 305 that lacks power I would go to a 3.73 or 4.11 depending on in town versus highway. IMO the 3.08 should never shift into OD at 35 and if it does there is something up with it. I had a 3.08 in my 92 5.7L TBI and would run 1600 rpm at 55 and it would commonly downshift at the slightest incline, I would routinely keep it in drive until I was ready to do 65-70 and actually got better mpg than lugging the engine in OD. My $.02
Is it shifting into OD or are you feeling engagement of the TCC? Take a test drive. When you feel it "shift into OD" at ~35 MPH, slightly depress the brake pedal - just enough to illuminate the brake lights w/o applying the brakes. If it "downshifts," you're feeling the TCC engage and disengage.Before incurring the expense to regear, you might consider recalibrating the governor to shift at slightly higher road speed.