Generation IV Internal Engine - Gernaded LS1. Want to go stock iron 6.0L. Any issues?

I can get a iron 6.0L shortblock for 200.00. I dont know if I should frshen it up stock or rebuild with stronger internals? I have a MS4 cam and stage 2.5 PRC 243's. Going to run a small shot on it. Any advise? What would the compression be? Just want something reliable and have more potential in the future.

I'd put new pistons in it at least. Compression with the dished pistons will be lower. What cc are your heads?

64cc. Looking for 11.1. Cannot mill the heads

The compression ratio on an Lq4 will be about 10:1 with those heads. With an Lq9 they will be around the 11:1 you are looking for. As long as the short block spins free with no noise (clanks and rattles are bad) and the cylinder walls aren't scored you should be fine to throw your stuff on it with a new oil pump and timing set. That way you can get the car going again while you build another motor from the ground up. Or you can just beat on it till it grenades again and repeat the process. :D