How can i connect a np205 to a 4l60e in a 2001 chevy 1500 and still have the speedo working?

wow...
first...
1992/93 vss on the np205 would give you a speed sensor.

to fit the adapter.... that'll be another trick. you might have to figure out what bolt pattern to get to accept the 4l60e trans tailhousing, or adjust a th400 adapter to fit...

then you have to get the right length output shaft to go to a sleeved 27 spline or get a spud shaft and a ford np205 input like patooeye did..

i guess it could be do-able.

Well is there a better transfer case suited to this? Would a np208 be a better choice?

208 and 241 and similiar cases, if your going for pass drop, I'd get one off a 90/91 Blazer/Sub, will have the VSS, pass drop, get the adaptor and will bolt up to your 4l60.

Np241 is a popular case behind the 4l60e like B454 said. My plan is to make a crawl box out of a Passanger drop 241 backed by a ford Np205. D&D machine has kit for around $500 for a 241/205 If you are set on a 205 behind your 4l60e.

Im not attached to any particular tcase. Right now im in the planing stages of converting my truck to a 4x4, so like i said im not attached to anything yet.