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The LS7 is a unique engine by itself. You cannot build a LS7 from a LS1. let me be the first to tell you this is not an easy swap or a cheap swap. I am in the process of installing an LS3 in my 72. There are a ton of small details that are not told in the forum discussion. It certainly can be done and has ben done many times. How much power you want depends on how big your wallet is. If funds are no problem why not put in a LS9 with a little work they will produce 700HP+ without a sweat.
"Gord" knows what he's talking about, as actually own a C6 ZO6 myself. Things a real screamer on the road course track, easily pulling to 7000 rpm. It's a factory engineered package though, with really not much left for modding. The cylinder's are very thin siamese dry wall liners, with no room for overbore. The Ti rods are over $200 bucks ea directly to GM. Dont get me wrong, as asolutely love this car, and probaby keep it until I die. 3100 lb curb wieght, with 440 lb lump under the hood, what's not to like. There are some places that actually fully bore out any LS, and convert to a big inch wet liner set up. Cant recall the places, but probably the way I'd go if wanting to build a larger LS from scratch.
LSX crates something to look into, but heavier cast iron, so keep that in mind. If headed that direction, maybe look into the World products block thats all original Chevy SB down low, and LS on top for the better flowing head designs. Thing just drops right in. LS3 L92 heads flow 330 cfm intake, and LS7 360. Never seen any original SB come close to that.