Test drove it some more, and the 2:65 is definitely the ticket. Even with the 300D NA (88HP),
1st gear ... still peppy and responsive off the line
2nd gear ... still responsive
3rd gear ... still responsive
4th gear ... got the slugishness and lopey which some folks warned about, but with the turbo I am thinking this will be just fine down the road
5th gear ... definitely a highway cruiser where I am betting I could drift along at 75 and barely break 2K RPM. Need to fix my speedo now.
Overall, very very happy. Well worth the hassels IMO. With my exhaust installed, I can hear the car on the road. No funky noises ... just a weird squeek when I shift gears now, whatever the heck that is.