Well, I might not be the best example, but I DO have a 95 Z that goes high'ish 11's on motor alone and mid 10's when sprayed and is daily driven. I've got about 5K in the motor and I did everything myself (except machine work of course). You could do it for a little cheaper, but not much cheaper. I overbuilt my bottom end to hold a stupid amount of juice, so you could get away with a few less bucks there (as in no billet steel main caps, no main studs, etc..). If you want to make a late model fly, put your money in the HEADS. Buy the best heads you can afford (AFR, Trickflow, LT4, etc..) or have the stock LT1 heads worked over by a reputable builder. Just make sure you spend the money in the right place. Did I mention get good heads? hehe
I would think that starting with nothing, I could easily put a 4th gen in the 10's for under (or just slightly over) 10 grand, including the cost of the car. They can be had very reasonably these days. Just be prepared for massive frustration when working on it, as it seems like it's hard to slid a sheet of paper between componants under the hood sometimes. Also, you'll need to get very familiar with tuning a late model and I didn't figure in the cost of the laptop or software in my numbers..