[Big Kev-O]

That LT1 has 260hp and is a reverse coolant flow Gen II with Optispark ignition. It is a reliable engine but optispark has some issues. There are solutions available to solve the optispark issues. The 5.3L makes 270-310hp depending on what it came out of. In stock form the performance specs are fairly close so if you don't plan on modifying your engine either will get you down the road. I would not spend $2k on a Gen II LT1. If you are considering modifying for more HP the 5.3 LS would be my choice. There is a huge market for LS performance products.