My wife drives a 99 K2500 suburban with a 5.7 engine and 133,000 miles. Friday we were heading off for a short vacation 11 hours away, and about an hour and a half into the trip the motor started sounding real bad. Stopped at a GMC dealer we were going by and had them take a look at it. Their verdict is a spun main bearing. They and my favorite local mechanic both recommend a new engine in this case. My vehicle is an 03 Avalanche with the 5.3 engine which I really like, much more than the 5.7 that was in the suburban. If I replace the engine, I'm seriously contemplating putting in an LS-based Gen III engine, probably a 6.0L. I'm hoping for much better fuel economy as well as better overall driveability. This being the wife's daily driver and generally full family hauler, I'm not so interested in performance gains in this vehicle, but I'd certainly take them if they came with the other desired benefits. I have never done an engine swap before, but I wouldn't mind giving this a shot, if it wasn't too bad of a swap.
What do you all think about this? Would a 6.0 give me the benefits I think it would over a 96-02 era 5.7? Would it bolt right up to the tranny as the 5.7 would? If I go this route, should I also go with a 4L80 tranny, and if I do, should it bolt up to the transfer case the same, or should I consider swapping engine, tranny and transfer case? I'm using HPTuners in my Avalanche, so tuning is something that I think I can handle. I imagine I'd need a new wiring harness, but it looks like I can get a 6.0 with PCM and accessories with low mileage for less than the GMC dealer who diagnosed the truck wanted for a crate 5.7 from gm.