Not sure what my problem is!!!!!!!!

If that cam is 204 degrees at .050" lift it isn't much more than stock so it shouldn't need a high stall converter. You definitely have a serious problem if you can't turn the idle down below 700 with that cam. Maybe a vacuum leak, maybe the idle mixture adjustments aren't set right, maybe a bad carb. Heck I've got a 234 degree cam at .050 and can set my idle down to 650 in drive with no problem and it stays running. It's lumpy but it runs. Your engine sure shouldn't be screaming at 60 either with 3.55 gears and tires that tall. That's real close to my setup an I have no problem running 70 down the hwy. You need to get a tach and put in it and see what the rpm is at 60. That'll tell you if something is slipping. Also for the quick shifting trans., lengthen the cable (adjust the adjuster so it pulls the cable farther back when at rest) to make it shift higher. I have the Lokar cables on mine and what I did is have someone hold the throttle pedal all the way down (engine shut off) and adjust the Lokar cable so it pulled the throttle pressure linkage (kickdown linkage) all the way. That gives the highest upshift. Most stock torqueflites will shift well before 5000 even adjusted all the way. If you do that you should be ok but you might have to back it off just a little if it revs too much before it shifts.