You should be able to use the dakota box to convert the signal going from the 700r4's VSS into the LT1's PCM. The LT1 PCM's speedo output should already be correct, just hook up its output to your speedo feed wire and all will be well.
*This is kinda similar to what you do when you put a T56 in a TPI car. You have to run a dakota box to convert the signal going from the T56's VSS to the TPI's ECM... the TPI ECM will of course already have the correct output to the gage just like your LT1 PCM will have the right output for your speedo.
**For my LS1 swap all I had to do was hook up the LS1 PCM's speedo output to my speedo feed wire... works perfect just like the factory and I can "tune" my speedo by changing gear ratios and tires sizes in the LS1 PCM.

It's almost all too easy.