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"Will the tranny hold up to the power the 4.3 will put out?" Well....they were used behind such motors as...427 & 454 Chevy, 455 Buick and Olds, 501 Caddy....yup...I think with a good oil cooler it will hold up to a 180 hp 4.3.
I personally owned a '70 Chevelle with a modified LS-6....and never broke the TH-400 in it...axles, r&p's, U-joints, etc, etc, even candy-caned a driveshaft once....but the tranny held up. (I did take meticulous care of it though.)
The TH-400 is arguably the strongest trans GM ever built for automobile use. The only other trans in the same league is the C-6 Ford....the 727 Chrysler is a distant 3rd.