Personally, that sounds like a terrible option. Spending $5,000+ on a new LS1 seems wasteful, considering the slew of options that are available. If you're ready to spend that kind of money, then places like Texas-Speed, JEGS, Summit, etc all have a slew of products ranging from assembled short-blocks to turn-key packages.
However, if you're not comfortable spending that kind of money, I'd contact Craig regarding this 100K mile LS1 short-block for $350, drop it off at your mechanic's place and have him swap all of your trimmings and accessories on and install it for you. Much more budget friendly. He's in the Cape May area. See his for sale post, here:
http://www.njfboa.org/forums/showthread.php?t=68643
Best of luck.