I had a similar choice to make for my project. I went with a TH400 for the following reasons:
The car will make somewhere in the 600-700HP range and (hopefully) running mid-high 10s so I'm gonna need the strength of a 400 - don't want passes where I'm lucky the tranny held up!
Eric @ Dynotech down here in Jersey also said that the gear ratio in first, despite the larger rotating mass of a 400, will help the car GAIN a few tenths?! (what d u guys think of this?)
The 400 is CHEAP to build. I built mine for about $600(less convtr) with race clutches and steels, shiftkit, 34elemnt sprague, bands, mechanical modulator, etc. You can have someone else do it shipped to your door for around a grand. For a similar strength 200, your looking easily over 2G - probably more like 3G. As for me, if I had the $$$, which i don't
(going to college), I would have bought a sweet 200. I your car is going to be mostly race, though, do the 400.
The only thing that sux is that the car will be daily driven and the lack of OD and lockup is going to make my gas tab higher. Well we'll see when I get the car on the road how much I can grow to live with these losses.
My setup: TE61, Stretch cooler, Sheetmetal intake, 3"SS DP, 55/72#injs, ultrachp, portd/polishd iron heads, girdle , pistons, blah... will post ET's when car is ready 2go!