It is kind of a personal preference as to 5.7 or 6.0L. I like the 5.7. It is quite a bit lighter than the 6.0 and in stock form makes the same horsepower. I've read that your 5 speed will work fine behind either or you could swap for a 6 speed. The 5 speed getrag tranny is suposed getrag to be very durable. The difference in the two 6.0L engines is the higher HP one has flat top pistons that raise the compression ratio.
What engine?I would look for a Camaro complete LS1/T56 pull out with harness and electric fans.
Motor mounts?I have a template to convert your V8 mounts to LS1 block.
PCM tuning?Nelsons!
Drive Shaft? A racing one would be good for the standard tranny!
Instrument cluster? You could build a custom one out of Autometer or something.
Gas Mileage? You could get in the 20s but you probally will drive the tires off! The lowest I've gotten is 17.3MPG and that was WOT dyno runs with highway driving.
$6000 should get you driving again if you get the right deals. I got mine from http://www.hpsalvage.com/.
2006 Superior Blue Trailblazer SS AWD, Stock as a rock
Sold: 2002 GMC Sportside Denali front end with a 2002 LS1, FLT level 5, Yank 2600, Trick Turbo, T76, Nelson intercooler, 60LB injectors, Warbro fuel pump, Eaton locker, Magnaflow, 3.42, Nelson Performance Tuning (speed density).
Sold: 1981 GMC LB RC 1500 2002 4.8L 4L60E 12 bolt 3.73 Richmond Lock Right AC PS Nelson Performance tuning