OK. Let's try it like this then. Here's how the gear ratio actually occurs -- it's the ratio of the number of teeth on the ring gear divided by the number of teeth on the pinion gear. For example, the 7.75" Dana30 rearend in my car has 41 teeth on the ring gear and 11 teeth on the pinion gear. Do the math -- 3.727:1 ratio -- 3.73 gear. With the same ring gear a 10 tooth pinion gives you a 4.10 rear end, and a 9 tooth pinion gives you a 4.56.
If you think you counted turns correctly here are the implications. You say you're certain you have a 1.70:1 rear gear ratio. On a 7.5" ring gear if you do some simple math, what you'll discover is that the pinion gear would have to be SO BIG to accomodate the number of teeth it would have to have to achieve that ratio, that it wouldn't fit in the housing.
So, we all know there's an error in your counting. You can insist you're correct if you like -- or you can get back out there, jack the car up, and count again --- so you can discover that somewhere along the way you MISSED one turn of the driveshaft. The result is that the DS turned about 2.7 times and you have a 2.73:1 rear end in it --- just like about 99% of every 7.5" rear-ended Mustang ever built.
Just a guess though.