Sixpack are you using a fueling or timing box with your setup. When towing what egts are you seeing?
I can get well above 1250* lugging the engine. If I keep the rpm's up I have no problems with egt's. They're controlled with the right foot and down shifting. I hate to tell you what max egt's are because it is all in how "you" drive. I can tell you I never had a situation that I could not overcome either by lifting my right foot or down shifting. Go for it, you won't regret it.
As for fuel mileage... . Empty running all freeway miles, the best I have got is 18mpg with the 1. 6's and the Smarty. Hope this helps ya.