OK here i go, i am by no means and expert on LT1 swap, its just that i have throughly read my material so here is my $.02.
First, will a Corvette LT1 engine and transmission fit on a 2001 Chevy S10?
Yes It will, it will require pounding the firewall and the transmission tunnel a little for clearance, and if you get a t56 it will require you to cut custom holes for the shifter knob in the cab.
Second, what sort of problems will i encounter in going through this project? Is it worth the time, money, and effort?
One of the most common mistake on the conversion is the wiring harness, the EFI can get kinda tricky in the engine bay when there are hundreds of different wires everywhere. All dependig on how neat you can make it. No doubt there is alot of work involved but i assure that if the engine turns out running good then you'll have a nice 14 second truck!
Third, how long and how much does it usually cost to go through this project?
Most of the porject depends on how much of the swap/conversion parts you have readily available, if you plan on having everything you need (which is usually not the case) then the swap depends solely on how fast you want to work and how clean you want it to be. I have heard of LT1 swaps anywhere from 5000 all the way to 18000 including engine, tranny, and in some cases labor not done by the owner, it is all about how much you want to spend and how nice you want it to be.
Website to visit, comments to read, etc. will be appreciated. I'm new and I'd really like to have an LT1 S10