I have a '98 F-150 4.6 5 speed. It came with 3.08 gears. Had to start in first gear, no load, level ground, wouldn't pull the hat off your head. 16 mpg.
I had 4.10 put in. (Two wheel drive) Cost me $500 in 2000. These gears are a pain to adjust requiring a pile of shims to set the mesh and bearing preload. The 8.8" axle is not at all like the easily adjusted 9" axle. And its all in the axle, not in a removable pumpkin.
Gas mileage did NOT change. Its still 16 at reasonable speeds. Stayed that way for the last 80,000 miles. Goes down to 15 at 80- 85 mph or at 52 pulling my 3000 pound camper. The 4.6 with overdrive and 3.08 is way off its torque curve almost to the point of lugging.
The factory towing combination rating was 6500 pounds, so 2200 pounds trailer. 3.55 towing rating was more than proportionally better. With 4.10 (and since then the factory has started offering 4.10 or 4.11 as an option in F-150) I rate it at 9900 pounds combination, or 4700 pounds trailer. I've pulled a load of beans to the elevator and the combination weighed 11,000 pounds. I've had it loaded to 9800 pounds with fertilizer on my flat bed several times and it definitely knows its back there, but it moves it just fine.
Now all but uphill loaded starts are 2nd gear, and its not a great idea to stand on the throttle or there can be wheel spin (a quick corner or sand makes that certain). It has great throttle response up to 90 and it will take a stock mustang at a light at least up to 60, not by much, just 3 or 4 feet.
I'd do it again. It turned a city truck into a working truck and didn't hurt the gas mileage. Sure the engine turns 4/3 as many revolutions but its more lightly loaded, so maybe the wear isn't as much. If it gets only 200,000 miles instead of 270,000 I'll not grumble. Its to 105,000 now. I changed the gears about 27,000, I think.
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