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You can drive forever at that RPM. Many folks driving M1008 at 55 mph are 2600-2700 RPMs. With my OD in my M1010 on 33" tires, I am at 2500-2600 at 65 mph. Go enjoy driving it. If you wanted a quiet vehicle, you bought the wrong one. ;)

Yeah, that looks like the correct TV bracket.

Also keep in mind, IF you do go for a 700R4 trans, you need to have the special, very rare and hard to find, TV cable bracket that goes between the injection pump and the TV cable at the back of the engine. Before thinking about a 700R4, get this bracket FIRST.

Honestly, before I would spend the money on doing an OD in a M1009, since you already have 3.08 gears (versus 4.56 of the other M10xx series), I would do like suggested and get a Tiny Tach (which I had in my first M1010) and get some real RPM numbers. Based on 3.08 gears, 33" tall tires at 65...

If you go that route, definitely do like I did and get a fixed yoke output. Slip yoke and double u-joints don't play well together.

Ah, missed the fact you have a M1009. Yes, my M1010 is still on 4.56 so your 3.08 would be nice for the OD. Here is a pic installed. It sits up higher than the transfer case. One thing to note though, it shortens your driveshaft about 16". On the longer wheelbase truck its not a big issue...

I am running a Gear Vendors OD and comfortably cruise at 65 mph and can get to 75-80 mph in my M1010 (flying brick). It works nice but it is still not going to give the truck a modern vehicle feel as far as driving speeds. It does help and I like that I can split gears when climbing grades...