For race use – I wouldn’t worry about the dust shield.
For street use – well it depends.
I would use the dust shield - unless it is already a “clunker”, for it does keep a lot of “stuff out of the area.
The main purpose of a transmission cooler (the one inside of the radiator) is to warm the fluid – for ATF works best between 150-200’ F (65-93’ C) or thereabouts. Cooling the fluid is its secondary purpose.
The ATF temp after radiator "should" be in the 150' F (65' C) range.
I would say having transmission temperature in that range is also very good for racers, sense “hot” fluid takes less energy to push than “cold” fluid does.
I don’t think this would make a huge difference on the track – but each couple of ten-thousandth of a second does add up.
Now for street racing, for someone with an extra heavy foot, for someone who tows a lot and for those with a non-lockup converter – having an external transmission cooler after the radiator cooler is a VERY GOOD idea.
Lockup converters will generate just as much heat – but stops the heat production, just as soon as the lockup is applied – so transmission temps drop pretty quick. An external cooler would be very nice for those with a heavy foot, for police or for towing.
I don’t think many FMJ bodies will be used for full-time police vehicles anymore – but there are some of us who road race.
There I do recommend a huge external cooler – after the radiator cooler.
For most of us who get on the gas every occasionally, or only take cars to shows/occasional drag race, I wouldn’t worry about anything other than using stock parts.
Having a temperature gauge (either mechanical or electrical) for transmission is very good idea. The best place for it is in the transmission cooler line (the line at front of transmission, heading towards the radiator) – but having it in the pan is OK.
A transmission will not live long if temperatures get to, or stay above, 250’ F (121’ C) often.
If you see temps at 225’ F (107’ C) often, you need to add an external cooler SOON.
BudW