The 8.5 10 bolts are strong and could handle the LS3 but mine was an open rear. I would have needed to rebuild it and by new stronger axles. Considering I was going to change the rear suspension I started to look at my other options.
I started reading about the detroit lockers and learned the 9" lockers will perform better since they dont have c clips and cross pin. I was able to pick up a complete big web 9" that included a 31 spline third member with 3.20 gears and a locker for around $280 on Craigslist.

It was in rough shape but it cleaned up after a little work.

I will go over the suspension in the next update