Could not agree more that this is a really bad idea. A 4L60 (and E) and 4L65E transmissions are next generation 700R4's. They are beefier and solve some of the issues that the 700R4 suffered from.
For the amount you would spend on on getting your 700R4 into your Tahoe, you could pick up a good used one from Craigslist or have the bad one rebuilt.
http://www.hotrodders.com/forum/700r4-vs-4l60e-171778.html - see the first to last post. Good information.