Seriously....go down to a Chevy dealer and take a current LS3 Camaro for a drive. Then think about the 99HP more a 525HP LS3 crate motor will have, is your final product going to have a good enough chassis to handle that power? I'm trying to sell my 2009 Z06 Vette right now, if I had a $1 for every guy who said he doesn't care about the extended warranty because he is going to "mod it" I'd be rich enough that I wouldn't have to sell it! That car can get out of shape even with the traction control on! Your vintage muscle car will be quickly stuffed into the nearest immovable object with 500LS HP unless your quite the driver ( me I've only won a few local Corvette Autocross championships so I'm not that great.)
Save some money for a trans and differential that won't blow up and some good springs/shocks to help you live through the day. You can easily sell the LS later and swap in a higher HP replacement when 500+HP with a warranty isn't good enough for you