As mentioned, C4 is a usable low cost automatic. Works fine, plenty strong. Lacks a lock up converter so you need to gear highway driving for more RPM to keep the convertor into the coupling stage so it doesn't slip too much and make too much heat. 4.11s and 35's is a little light on the gearing for my taste. While the tall tires will bring down the highway RPM, it may bring it down too much.
The 4R70W is a hands down all around better transmission. With the lockup converter you can cruise at low engine speeds and not slip the converter (making bad heat for the trans and wasting fuel). The lower 1st gear will get off the line better and make it a blast to drive. Now axle gearing should be 4.56 or 4.88, I would lean toward the 4.88s. I have ran a 4R70W for years. Did lots of miles (a few Phoenix to Vegas road trips was part of that). My combo was a very torquey, built up 351W, the 4R70W, 4.88 gears and 33" tires. For the engine and tire I was running the 4.88 was a little low for freeway driving. Not bad, completly acceptable, just a few hundred RPM higher then what I felt it should be. I kept thinking that going to a set of 35" tires would make it geared perfect. Or, if it only had a 302 then it would have been geared perfect. So another factor is what engine are you running and how is it built?
Now the 4R70W parts into an AOD. Yes it can be done. Gets you 2/3's of the way to a 4R70W. Costwise it comes in nearly the same as you now need 2 transmissions to start with and rebult one with half the parts from the other. It will get you some of the benifits of the 4R70W (wider band, gears, mechanical diode) but you still won't get some of the better aspects of the 4R70. You can't control the lock up of the converter, you can't dial in each of the shifts, you can't hold 2nd gear (without another costly upgrade to a new custom valve body). So there are several limitations to doing the reworked AOD.
Ground up resto, all the good stuff, just do the 4R70W and be done with it.
On a budget, want to get it together fast and cheap, C4