If you are running a C-4, C-6 automatic, or Top-Loader 3- or 4-speed manual transmission (all 1:1 in high gear), then you are greatly limiting the capability your car has in both performance and economy.
The best choice is to run a lower gear ~3.25-3.70:1 in conjunction with an overdrive transmission, such as an AOD or T-5 manual 5-speed (typically .68:1 in overdrive).
The overdrive will allow you to take advantage of off-the-line acceleration with a lower rear end gear, but at cruising speeds, the engine RPMs will drop drastically once the transmisssion goes into overdrive.
As an example, if you had a 26" tall tire, 3.00:1 rear end ratio, and non-overdriven transmission, your engine RPMs at 60 MPH would be ~2,326 RPMs. Given this very same senario, except coupled to an overdrive transmission, your cruising RPMs at 60 MPH would be 1,582 RPMs --744 RPM drop.
A T-5, in overdrive, coupled to a 3.50:1 rear end ratio would cause the engine to "see" the rear end ratio as being 2.38:1 (3.50 x .68 = 2.38:1). Even though the rear ratio may be 3.50:1, in overdrive, the engine thinks the rear ratio is 2.38:1 --That's even higher than a stock 3.00:1 ratio with no overdrive, so you would actually get better mileage with the 3.50s over the 3.00:1s, and still have much more accelleration in 1st - 4th gears with a T-5, or 1st - 3rd with an AOD.
http://www.ultrastang.com/Rearinfo.asp?Page_ID=3