Darrin:
500 is not an unreasonable number for a 302, and I have a friend that just did his 65 mustang over to a 331 stroker and it is well over 400hp without getting really crazy, and I know he could get more but he also wanted a reasonably tame driver.
Sounds like that gearbox will handle the power if you don't hammer it, I have seen a lot of Audi boxes take a lot more power than they should, and I think if you are reasonable with it in 1st and 2nd gear it should hold up...a lot cheaper than my gearbox for sure.
Do you know what the final drive works out to be? I know there were a few versions of ring and pinion combos for those boxes but I am not very familiar with the specs.
I can tell you that my box has a really low 1st (2.58) and I forget what 2nd gear is but 3rd is 1.04...almost direct,... 4th and 5th are both overdrive, and much needed because the ring and pinion is 4.22. I should get a decent highway ride although I would have liked a 3.90 R & P.
Just throwing out my concern on the light....A friend of mine up the road here just burned down his garage with the car inside...he was lucky only minor burns but the light fell off the car and there you go.
Cheers
Phil