the head situation is really rather simple, you had a cammed 5.3 with a 8.8 to 1 compression ratio. dynamic compression ration would be even worse...
you would want to have about 2.2 points more on your compression. even if the wiring and everything else was done right you would have lost far mor power then you would have gained.
I'm not trying to be a dick, but no you did not research this if you tried to put this setup togather. buy a book on building performance engines, it will help you alot.
also shame on your "friend" for trying to give you that setup.
this would be your engine specs if you wanted to put it into a calculator
bore 96.01mm
stroke 92mm
gasket .053 inches
cc volume 66.67cc's
and here is a calculator to plug it into
Engine Size and Compression Calculator
stock 5.3 heads are 61.1x cc volume
ls1 heads are 66.67 cc volume
keep in mind that is if they are untouched combustion chambers, and alot of port jobs will shape the combustion chamber for better flow which enlarge it even more which would lower your compression even more.