NA 5.3 with 317 heads
Early 5.3s have dished pistons and need that small combustion chamber of the 706/862 heads to get to 9.5:1 SCR. I don't think you can mill a 317 down enough(safely and still have the intake fit) to get it to the chamber size of the 706/862. And if you put the 317s on stock, it would likely run like a 70's 305(badly).
I'd have those heads milled .015 or so to get your compression up near 10:1. They can check for cracks at the same time. I don't know what your other goals are so take this with a grain of salt--you can take a 2" LS1/LS2-sized intake valve and have the existing 706/862 seat cut out to fit the 2" valve without installing a new seat. May not benefit your particular build but that is a budget-friendly option.
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Here is some good reading on factory cam swaps in the LM7. Stock LS1 cam is actually a nice waker-upper for the 5.3. you can usually find them cheap, too, and they drop right in. I have a couple I paid $50/ea. for sitting around. They aren't hurting my feelings sitting here but if it would help you out, let me know.
http://www.hotrod.com/articles/ls-cam-test-comparison/





