Currently have a 54 ford with a 239 y block in it and a three speed ford o matic transmission. transmission just went out so im wanting to upgrade. eventually gonna drop a 292 or 312 motor in it. was wondering what the best transmission would be to run in it?
If you're sticking with an automatic and don't want to go the adaptor route to something newer, you have just the one choice; another Fordomatic. I'd suggest a '57-62 version with water cooling, the earlier ones were air-cooled. It may be possible to also use a '58-up Cruisomatic/FMX, but you'll have to do the research to see if you can match up the input splines for the torque convertor.
Both the Ford Barn and yblocksforever will have response for both Steve’s remarks as well as C4’s and AOD’s. I’m not popular with this, but I’d find an adaptor from Wilcap and use a 2004R. Great trans with great ratios, weight, power loss, etc.
A T85 with overdrive would be my choice, but that's just me, and of course, you would have to source everything from pedals to driveshaft, and you might want a rear gear ratio change also.
It' definitely look into something in OD if you plan on cruising a bit. It' go with a older AOD that uses the TV cable or go with a T-5 5 speed manual. The C4 is good. Just doggy at speed.