Here is a picture of the position the 205 should be in for 2hi.
Inner rod all of the way out, and the outer rod in the middle.
http://farm1.static.flickr.com/220/4...0ba233.jpg?v=0
Granted, a 350 is a non-lockup, non-OD transmission. Unless you have a lockup 350... Can only hope for so much.