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Hey fellas I made this same topic in the Engine Mods section but noone seems to go in there often. So I thought I would post it in here too and see if I get better results here is the link for the thread: http://forums.corvetteforum.com/zerothread?id=494905
If you are looking for a good strong modern engine then it is hard to overlook the ZZ-4, 355HP and 405 Torque. It is about $3300-3500 from numerous GM Dealers. I bought one from Sam Taylor Buick Cadillac dealership in Ft. Walton Beach Florida, for $3350.00 delivered. They have gone up on their prices since then (last year.)
Since I don't think Florida has any pollution testing, it shouldn't be a problem sticking one in. It comes with everything but a carb, but you will have to replace the waterpump with a Corvette style short water pump.
I would not recommend using the computer controlled carb that is stock to the 81, but other than two things it should drop right in.
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.