Well, first I have to say that anything is possible. Now, here's some of my thoughts on this subject. The Turbo 425 differential bolts to what would normally be called the tailstock of the trans. Your late Vette rear axle is fed by a standard driveshaft and the latest Vettes with the transaxle is another matter entirely. So, no, it won't work unless you spend extensive money and time having an adapter made. And there would be no gain as far as I can see. I was trying to figure out why you wanted to turn the engine around and the only thing I can think off is to move the differential rearward making the engine sit in front of the rear axle instead of straddling it like it would if you used a stock Toronado setup. If that is the case... I'm not certain but you may be able to install a Turbo 400 tailstock and output shaft on the Toronado trans, run a short driveshaft and then install a flipped differential of your choice so that you don't end up with 1 speed forward and 3 reverse with your rearward facing engine. If the parts interchange it should be a fairly easy job. Now, flipped differentials shouldn't have any lubrication problems but not a lot of people have run them that I am aware of so I can't say anything about durability. Yeah, I've also thought about this before but it is probably easier to get a proper transaxle, like a Porsche, and use a ready made adaptor. Good luck, and put up some posts when you get going, sounds like my type of project.
First of all, it is not a std. old style differential, it is one of the nice aluminum boxes that bolts on the back of a newer Vette (like a C3) transmission housing. So it is already basically the same kind of set-up as the Toro differential, a bolt on. Second it is TONS lighter than the cast iron beast that the Toro came with. Third, although it makes a little difference, by turning the system a** backwards it moves some of the weight of the large heavy chain drive and the transmission forward which would be helpful in this ultra light rear weight biased car! Forth, it shifts the low hanging chain case from the extreme rear of the car to closer to the middle which means the various crank driven belt drives are now at the rear and tucked up under the body. And last, there isn't any room for even a short shaft drive, this already short Toro drivetrain extends from just behind the driver's seat back to the rear bodywork with the lower chaincase actually showing about 2" into the rear pan as it sits now.
I appreciate your support and will certainly do some photos when it is ready to go. Any body else got any exerience/advice? Been waiting for Chip Foose to sneak this thing out of my shop for years now and evidently he doesn't know about me! Loved his show and how FAST they could turn around a Beater into a Show car! HA!HA!