The reason to go used is cost. As long as the used block is guarenteed your golden. The reason to go that way is that parts(especially used) are more readily available. The ls1 has a larger aftermarket then any chevy engine. The other reason is that using an engine that stock puts out 330 hp at 330 hp is generally infinitly more reliable then tuning a 200 hp engine to 300 hp.
(From my personal headache experience and many of other fbody enthusiasts).
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