Is this normal?

I purchased an 89 shelby with the 2.5 auto tran. I was wondring about the rpms running about 3000 to 3500 when I'm going 60 to 65. A friend of mine keeps telling me the tranny is bad, would high rpms be a symptom?
I was also wondering if someone had any suggestions on getting some extra power. I havent put any goodies on yet because I dont know a lot about performance parts but I cant to work on it.

Final question, is there any difference between automatic and stick performance wise, I keep hearing different opinions and I just want to know for a fact.