OK so if it is the clutch pack what rebuild kit do you guys recommend. I have looked around and there are too many out there to figure it out. I would like to go with a good duty kit. I am running 4" lift with 35's and .308 gears. Also while I am at it what gear should I use. I have run all of the calculations and they say a .373 would do it but the guys i know all say .411s. Again thanks for looking at this and any help you can give.
Yep, those 3.08's will kill a trans with 35's. With 35's I too would run 4.10's. 3.73 is the bare minimun. You're talking a bit over 1/4 of 1 single turn difference. 35's are heavy tires, they are also 12.50 wide so that means you have 50 inches of tires creating friction on the pavement. Also lifted higher, means more wind drag. Some guys even go with 4.56's as a minumum. You're not running an OD trans and Th350's are fairly durable so you can get by with 3.73's if you want to. But all things considered, with 35's you can run without an OD and still run 65-70mph and still be cruising at just under 3000 rpm. Not good on fuel, but you're not going to anyway with those size tires. 3.73's would have you at just under 2700 rpm @ 70. Anything you can do to take strain off your powertrain is wise. Lower gears is the best way to do that.
If all you're wanting to do is replace clutches, just do a banner kit. 95% of the time, your steels are reusuable. If they are severly burnt and have colors on them like blue and yellow where they got so hot they glazed them replace them. Bushings a Th350 are USUALLY reuseable even with a little wear just long as they aren't so thin or gouged up. You could get just the common bushings if you want, but then you need a way to install them too. Here is a Banner kit.
http://www.transmissionpartsusa.com/350_Transmission_banner_kit_p/470-000047015.htm
Nylon filters are good, if you don't use this type, go with Dacron.
http://www.transmissionpartsusa.com/TH350_Transmission_filter_p/470-000047922.htm
I've also got a Th350 Rebuild Thread in the Auto Trans section. If you try to do it, and have questions, just ask.