CM360:
If you are going to change the tranny and shorten the drive shaft, you may want to consider putting in an A518 (Overdrive 727). Bell housing pattern is the same as a small block A727, and you will still need to shorten the drive shaft, but the tranny mound has to be moved back between 1-2 inches and made deeper by about 1 ", and you may need to work out the speedometer cable and TV cable lengths, but you gain am overdrive gear and lockup torque converter for the highway. Just a suggestion. For the towing specifically, you can go to a lower rear gear, and not have it beat you up on the highway. As an example, go to a 3.55:1 rear end gear, and have an effective 2.45:1 on the highway.
Kostas