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With the Atlas we have a 295hp GM engine that can be had dirt cheap at any wrecking yard.
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In summary, I think these have the potential to be a great swap option for the "do it yourselfer" on a budget. If you are strictly seeking power (namely torque) at any cost the LS V8 is a better option.
I think you're misjudging the cost of the 4.2. My junkyard is very competitive on its prices for our area, and for the 295hp model (2006+) that you said is dirt cheap, we would be anywhere from $1000 for an engine with 200k miles to $1500 for something with <100k miles, in addition to a possible core charge. The oldest and cheapest 4.2, an '02, will run you about $500 for one with high miles to $650 with good miles.
Also, this is not the most reliable engine. I've been running this yard for 3 1/2 years now and have sold maybe two LS engines that were actually for replacement and not people doing engine swaps. I've sold every single 4.2 that we've gotten in, which I think is about ten of them. I couldn't speak for the '06 or newer, but the '02-'05 throttlebodies are also apt to give trouble and cost $75 or more used.
I want to like the 4.2L and hate to be a naysayer, but it's just not as reliable and inexpensive an engine as I believe many people in this thread have the impression of. The only time I would say to go for it when doing this engine swap is in the OP's case when he already has the vehicle, knows it's a good drivetrain, and will incur little to no cost in the swap.
Good luck to you.
I think you're misjudging the cost of the 4.2. My junkyard is very competitive on its prices for our area, and for the 295hp model (2006+) that you said is dirt cheap, we would be anywhere from $1000 for an engine with 200k miles to $1500 for something with <100k miles, in addition to a possible core charge. The oldest and cheapest 4.2, an '02, will run you about $500 for one with high miles to $650 with good miles.
Also, this is not the most reliable engine. I've been running this yard for 3 1/2 years now and have sold maybe two LS engines that were actually for replacement and not people doing engine swaps. I've sold every single 4.2 that we've gotten in, which I think is about ten of them. I couldn't speak for the '06 or newer, but the '02-'05 throttlebodies are also apt to give trouble and cost $75 or more used.
I want to like the 4.2L and hate to be a naysayer, but it's just not as reliable and inexpensive an engine as I believe many people in this thread have the impression of. The only time I would say to go for it when doing this engine swap is in the OP's case when he already has the vehicle, knows it's a good drivetrain, and will incur little to no cost in the swap.
Good luck to you.
Not knocking your experience, but I've owned a few vehicles with these engines and have had great success with them. Currently have a '02 envoy with 215k and an '05 Colorado with 308k. I've replaced water pumps on both(twice on the Colorado, about 150k between) and a radiator on the Colorado as well, otherwise nothing but oil changes and air filters.
I do not see anyone arguing, the OP asked for opinions and that is what is being expressed. Heck, if you are determined enough pretty much any motor made can be made to work in one fashion or another. It all comes down to the individual, which is what makes all of this fun in the first place.

5 year bump. Since then in the last few years my friend Calvin has made great strides and is now a pioneer of using this engine for performance applications.
He’s shown repeatedly that these 4200’s can make over 400whp on boost only, on completely stock long blocks. And he’s solved the unique transmission pattern by making adapters to common GM bellhousing pattern.
In the last few years around here turbo’d junkyard LSx swaps into racecars has become so popular that go much faster at the pick-n-pull yard. However there’s always dozens of complete 4200’s that sit untouched for months. Maybe it is time for someone to swap one in a 60.. turbo’d of course.
(side note, this car was built for $2k, so that pretty much eliminates the cost problem if you are willing to spend some time to make stuff)
Never even new this engine existed. Your Friend Calvin make the adapter for the NV4500 then?