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A reasonably built 700R4 can handle anything a 6.2 can deliver. All of the deficiencies of the 700 have been worked out and they can be built to hold 1000HP. I've had several trucks that came factory with the 6.2 and 700 and they worked just fine.
As far as the transfer case, just remember you...
There are many different kits offered from the aftermarket to control lockup. Some are simple hydraulic devices, some are completely programmable. As far as shift pattern, it's the same with one selection added. You can either get a shift indicator from a junk yard, sometimes on ebay or have a...