I'm starting this thread to keep track of my build this winter and as an introduction of myself. I haven't posted much here, but I've been browsing the forum for a while researching for my swap and wasting hours and hours looking at sweet builds.
To give you some background on me, I bought my 240 about a year and a half ago (my first car ever... haha) and started doing autocross. I got into drifting about a year ago and have been pretty obsessed with it ever since.

One of the first autocross events I went to. Bone stock baby!

Found out about drifting, started practicing at autocross events.

Getting better at drifting autocross courses.

First drift event on the E-town road course. Finally got a diff and coilovers... woohoo.

Missing a few parts, but still drifting.

Somewhere in PA.
I drove with the stock KA all year because I couldn't afford anything better, but then I graduated from school and got a real job in September. I had gotten pretty decent at drifting and wanted to start doing competitions. So I thought about the best possible engine I could get for the car in terms of power, reliability, and weight. LS1 was a pretty obvious choice. I decided to try to compete in the US Drift series in 2009 and to completely rebuild the car over the winter.
I drove in my last event of the year on October 25th, and the car went up on jack stands the following week where it has been for the past month.
My plan is to repair all the rusted areas on the car, stitch weld the engine bay and a few other areas, build a roll cage, paint everything, and install the LS1.
I'm going to keep the engine stock so that it's as reliable as possible. I'm doing just a few things to it to make sure it will stay together when I'm revving at 6000 RPM for extended periods of time. I'll be installing aftermarket oil pump, timing chain, rod bolts, valve springs, titanium retainers, pushrods, and an Accusump system. It will be the most reliable stock-power LS1 ever... haha. But more than 300 hp should be good for a 22 - 2300 lb. car.
Here's the progress I've made so far:

Right before the car gets torn down. Trying on a kit I picked up cheap off craigslist.

Couple of hours later.

Engine and tranny out.

Took a break for some inspiration: Miata with Ford 5.0. It made 225 BLAZING horsepower and 270 lb-ft of torque.

Powerwashed the car and finished stripping it. Not a single bolt left.

Left front strut tower (before).

Strut tower (after).

Battery tray (before).

Battery tray (after).

The right front wheel well was pretty messed up. Here I'm almost done cutting out all the rust.

Right front finally done.

Stitch welded.

And onto the next disaster area: left front.
Oh, and I almost forgot about this... haha! The LS1 and T-56 waiting patiently on the side:

It's from a 2000 Trans Am. 23k miles. Got it for $3,700 engine + trans.
Things have kind of gotten off to a slow start because it took a while to set up the garage, get the welder and 230V source hooked up, etc. but should be moving quickly now. I'll be finishing up rust repair this weekend or sometime next week. The tube bender should be arriving next Monday, so hopefully I can get to work on the roll cage next week.
My plan is to have it all done by late February/early March. I'll be using the full Daft Innovations kit (arriving soon), so installing the LS should be pretty quick and simple.