Would this be the smarter way to go? Would the Vortec intake bolt up to the heads on the TBI engine? Would I swap the transmission valve body?
By the way, I'm not exactly sure what killed the original engine. The only thing I know for sure is that it exploded during start up and that it broke the 2 rods on the front 2 cylinders. I suspect that the engine hydrolocked during start-up. I originally thought that the intake manifold gasket was to blame but it had been replaced earlier. So maybe the heads were the culprit? I checked them carefully but could not find anything wrong with them.
To use the Vortec induction system you'll need the heads (the intake won't bolt up to the TBI heads, and vice versa) the Vortec crank reluctor, a new Vortec timing cover (they're one use only), and all of the other sensors on the Vortec motor. You'll need to check the heads and rebuild them if necessary. Swapping the cam and lifters would be a good idea, as well as a new timing set. Aside from a compression difference due to the pistons, it should run fine. I can't answer for the trans. I, personally, would rebuild the late model trans, but it's your call.
You say that the FRONT two cylinders broke their rods. Do you mean cylinders 1 and 2, or the first two cylinders of one bank?