I have a 280SL automatic converted to the 3.27, and it's a mixed blessing. Great on the highway, but slow as a snail in stop and go driving. I would only convert if you plan to do a lot of long distance driving.
You will also have to remove the circulation tube, and plug the holes. In some cars, this has caused the gear oil to leak out the vent.
I have Gernold's magic button installed, and it works great. It drops the transmission one gear when pushed, after which the trans will upshift depending on the throttle position. It doesn't need to be held down. It's nice because you can get a boost without flooring the throttle.
And, I sold my 4.08 to Dr. Dan. I believe it's now in his Red Rocket.