The Th350 is not an ideal mileage trans. As for what ratio to run without an overdrive, it depends on what kind of driving you do. If it is mostly highway, stick with the 2.41 with these gas prices! However, it is not good for city mileage as it requires more throttle to get it moving. I have a 3.23 with a .67 overdrive and have found it a great compromise. Good acceleration and good city mileage. It is actually better with the 355 I have now than it was with the 231 V6 for city MPG! I have not had it on the interstate since I switched the axle as the car is now in auto body hell awaiting me to have time to finish it. The best part is I only spent $50 for the axle out of a V6 high altitude car. It is not a posi, but I will be fixing that soon... As for other ratios, my Frontier has a 3.54 gear and .7 overdrive factory with 215 65 15 tires on it and it revs pretty high on the interstate as compared with the Cutlass. It's a 4 cyl and can't even get 30 mpg hwy. For reference, 215 65 15 would be the OEM tire size on a MCSS, turbo Regal or 442 Cutlass. It was also used on F bodies with 15 in wheels like Z-28 and RS Camaros.
Also, the posi case that comes with a MCSS is not very good. It is an Eaton Gov-Lok which is not known for longevity.