535ls1mike

i am swaping a lm7 engine in to a car and I have found so far that to use a older stlye manual tranny like a tremec I need .400" spacer off a 6.0l truck b/c of the shorter crank that came the motor so that the flywheel is in the correct spot? so far this seams right to me but what tranny can I use. i have heard that the t-5 will not last long but the damn t-56 are so exspensive so what is easy found and rebuildable and bolts up to my lm7? I am only looking for 350hp right now but about 500hp later down the road. any ideas would be help ful and must be hydralic slave cylinders