Either your trans isn't shifting to 3rd, you have a 4.70(roughly) rear end ratio or the tires are approx 16" tall(you do have tires on the rims?)...
If the torque converter was slipping badly enough to add a extra 1000+ rpms it's going to over heat and be a dog on acceleration(we're talking inefficient/slipping converter, not high stall speed)... Maybe your tach is set for a 4cyl??
If transmission shifts normally, vacuum isn't a issue... As already mentioned, if it really is turning 3500 rpm, the trans should be overheating badly...
Ok well ill change the tach and see how it goes, I have had the tach go out. but only for an second. I may also replace the coil, as it is very corroded.
No doubt. Put it in drive.. hit the gas.. listen and learn through first gear.. listen and learn through second.. listen and learn after it hits third. No tach required.