Gary,
We place the gear selector in the 427 position. The 289 transmission originally had a very long tail housing. We do not like to use the long tail housing as it makes the drive shaft very short.
If you use the big block transmission, then the drive shaft can be the normal lengh and you don't have to worry about it binding up too much and wearing out prematurely.
The position of the shifter handles are very close and I have never had a problem using the 289 shift handle in the 427 hole by using the 427 shift linkage. Now, some people, I'll admit, want it in the EXACT spot as the original car--which is a little bit forward. We can place it where ever you want.
David


