Rebuild opinions and upgrade choice
Regardless of what you put in the motor now...if you're "doing this on a budget"...by the time you have the "budget" to go boost you'll be pulling it apart for a 2nd complete rebuild anyways. Tolerances and parts choices are completely different between NA and a motor built from the start for 20psi...
it sounds like you basically bought this with big hopes & dreams...and little thought into what it would take and how to accomplish your goal...
First: get the thing freshened up. if it has any real mileage at all you'll still want to break it down and spec everything out. new gaskets, seals, oil/water pumps, rings, bearings, etc...you basic budget rebuild...
if you want to do anything while the motor is out...you'll have to pull the heads anyways...so make the decision RIGHT THERE as to if you have the ***** & budget to go boost or not... IF YES - obtain a more boost friendly cylinder head and build those up. IF NOT: stick with stock or obtain other suitable budget casting for NA duty and build those up.
While that's apart your front cover will be off...IF BOOST: Boost friendly custom cam from one of the many cam gurus here... IF NA: good custom grind from one of many cam gurus here...
Your stock rotating assembly will take low double digit boost with intercooling or meth injection. If you get stupid with boost/HP you will at least want to swap out pistons and rods...AGAIN...decide right from the get-go what you want to do.
if it were me: I would do a simple yet tasteful H/C/I swap like i'm currently doing on my 2000 M6 Z28...while in the background still acquiring a 6.0L Iron block for one of two directions: either forged boost motor or a large cube stroker. The H/C/I on stock cubes will get you 420-470whp depending on how many rectangular dollars you wish to spend. in a 3rd gen ~450hp is nothing to turn your nose up to...it will be all sorts of fun on the street and you will be the envy of your trailer park (camaro. trailer park. joke. ha)...
Your stock bottom end should tolerate 10psi intercooled or with meth injection...with a conservative and safe tune so long as attention is paid to detail and the rest of your parts selection is of sufficient quality.
those 317's with a stock head gasket and factory pistons will drop the compression well into the 9's:1 so it will make less power low end compared to stock head/stock compression but once it gets turning it will make decent enough numbers to keep you happy...
I would still keep the two builds separate and just drive it in the meantime until you can build what you truly want...it sounds like you still have much thinking left to do before a decision is made...
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A rebuild at 119k is smart. I should probably do one on mine as it's north of 100k miles but it runs very strong. we'll double check compression before the teardown just in-case...
Even refreshing your current LS will give you plenty of time to think about the path you want to take...you'll end up with a fun car either way...just take your time...
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if you want a *bit* more out of it...you need to decide how far you want to go. there's a ton of aftermarket heads that will squeeze more power out of a stock cubic inch motor but they'll REALLY shine once you start to bump up displacement. You're gonna pay for that privilege though...

