302 help.

sounds like the valve is actually burned, at any rate, you need to have a machine shop do a valve job on both heads while you have the motor down.

as for trannys, sounds like you are wanting an automatic, the only reason i would use a C-6 is if i was making MEGA power or i had a small block C-6 in good shape laying in the floor in front of me. C-4 is the way to go, but be sure to make sure you get the right one, they have a removable bellhousing, and came in MANY different configurations, small bell, large bell, C-4's look alot like C-5's... this can turn into a long reply, due to all the variables...