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If that was my car (after I was done sobbing) I would pull the engine, disassemble and inspect hoping the cause was a component easily replaced. I'd then clean/flush the entire assembly to get any metal out of the oiling system. Definitely need to thoroughly flush the dry sump and related also. I'd go with the GM 570 HP LS7 crate motor cam, Johnson lifters and I'd verify the heads have been freshened up or I'd send them to Katech for updating. I would definitely seek out someone with LS7 knowledge to help me through this expensive endeavor. Sorry to hear about your bad experience but as I have found out with my track Z06 that big shop/names don't necessarily mean top notch work. A facility is only as good as their worst mechanic.
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2LS: a TREMENDOUS machine. Z/28: it's a BIT MORE POWERFUL, of course.
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