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I had a 400ci small block chev in my old lux with injection etc and it was fully engineered so I can't see that you would have any problems with a ls1. This is in NSW.
LS1 is engineerable in NSW, but not QLD, dunno about other states.
Finding a gearbox that would survive is your biggest challenge... a tricked t700 is over $3500... or you could stick with 3 spd t400 maybe cheapest way out.
thanks for the replies. Yes the ute would be in nsw also. I'd imagine diffs would hav to be changed also to something stronger...... About the box, yeh a 400 would be the go, id say the 700 would get mashed pretty quickly. Iv got access to a 6sp man but an auto would be more suitable