Not many updates since the discovery of the engine's condition, that's about to change. Dropped the engine off today at Wright Engines to start the rebuild. Bill Wright was kind enough to meet me on a weekend which was nice and convenient. Current thinking, but this may change due to budget:
Bore 30 over (355)
Good set of rings and Hypereutectic pistons
Balance the bottom end
Port & Polish the heads
Cam Shaft (raise the power band very slightly)
From what I've been reading, and some good advice from the boys over at www.ls1lt1.com and LT1 with these mods is good for around ~400hp, which in my 1600lbs car is bordering on lunacy. But it's fun! 
More to come when I hear back from Bill on the engine.
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