The easiest by far conversion is to keep the stock muncie bell housing and mechanical clutch setup. You then only need to buy an adapter plate that bolts to your stock bell housing and it has a carrier on it for your throwout bearing. This setup can be purchased from Mcleod including an extended pilot bearing if needed. Only drawback is the need for the electronic speedo. And yes you have to use a T56 from an LS1 (98+) to do this because the LT1 version has a much shorter input shaft.

 

****... so much for my thought of throwing my lt1 t56 on a poncho bb for my 2nd gen dream.

 

fwiw - the LS and LT input shafts are interchangeable. They are both 1-1/8" 26 spline, but the LT1 version is longer i believe.