wellllllllll....first reaction is your rebuild price is WAY out of line. I ran a TKO600 without oil and ruined it completely except the case and it cost 1200 to rebuild. Second, I had a TR-3550 (I think they are called TKO2) rebuilt by the same company and he used many of the parts from the TKO500 (I seem to remeber it was a closer match to the older 3550 than the TKO600) and the tranny has been solid with much more power than your 425 ft-lbs. (we are closer to 600 ft-lbs).
The guy I took it to was recommended by everyone I talked to. He is known nationwide as one of the foremost tremec guys. He mostly drag races but he has developed his own shifting forks and many other tricks. Everything he has told us has been 100% accurate. His rebuilds (if you request it) are not to factory spec they are his way and they WORK. The company is
http://www.promotionpowertrain.com/ and we deal with Walt (the owner). When we bought our TKO600 we had him make the mods to brand new trannies.
I have rebuilt about 4 trannies with him all FLAWLESS.... We have not needed to rebuild one that he has messed with yet (except the one that was missing oil for a few laps at sebring...ooops). I would tell him you want what we have (If you want my co. name and info so they can find his notes just let me know....he keeps perfect records of what was done to everything).
I would get a better shifter (pro 5.0 or hurst or whatever walt says for your tranny (the 500/600 comes with a hurst). I would get a shift stop kit (mandatory). I would have him use the 500/600 main shaft which is a stronger alloy. I would have him use his propriatary shift forks and other road race secrets he has. I would talk to him to make sure you setup the clutch EXACTLY right. The trannies are sensitive to clutch setup.
This guy knows his Tremec. You wont need anything else. He talked us out of dog rings. Dont listen to me call Walt and talk it out with him. I am pretty comfident if you ask around the tremec circles they all know of promotion power train......