I'm running a T56 transmission, with stock bell housing. I'm also using a Holley pan, which is fairly shallow, and about an 1/8" above my crossmember, and my bell housing bottom is just a touch ABOVE my oil pan, so if you end up having to cut your bell housing, you'll likely need a very shallow, or custom built oil pan.
The oil pan on an LS engine is a structural member, therefore the bottom two bell housing bolts go into the bottom of the oil pan, tying the drivetrain package together. The bottom of the bell housing IN MOST INSTANCES will be higher than the oil pan.
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