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Many of the answers to your questions can be found in the Corvair shop manuals. Wiring diagrams and illustrations in those manuals will show you the various electrical connections. You also have some decisions to make in adapting a late model engine and charging system (alternator) to a 1960 Corvair (generator system). I would choose to keep the alternator on the LM engine. But that will require some wiring harness changes and fitting the voltage regulator associated with the alternator to the 1960 Corvair. If you go the other way and choose to retain the 1960 generator, you will need to transfer the oil filter/generator adapter to the LM engine, so that you have the correct mount on the engine to mount the generator.
If your 1960 Corvair has a forced air heater system, you will have some heater hose connection differences to deal with, since some of the engine shrouds are different. If you have a gasoline heater, your decisions will be different -- primarily blocking the unused heater openings on the LM engine. The perimeter sheet metal and engine compartment seal are different, so some 1960 sheet metal will have to be fitted to the LM engine. The LM engine also has an automatic choke which functions differently than the 1960 engine. There may be some throttle linkage differences to deal with too. The rear engine mount is different so the hardware from the 1960 engine will have to be transferred.
The 1960 starter is unique and different than the 1961-1969 Corvairs. There are a number of design features in the 1960 Corvair that were unique to that single model year, so adapting an engine from a LM car will require number of decisions and perhaps some fabrication to make everything fit and work properly.
You should download appropriate shop manuals from the websites listed below, as I suggested in May. Studying these manuals will help you to plan your engine swap, wiring changes, etc. Where there is some uncertainty, members of the Corvair Forum can probaby answer your questions.
I have not seen a copy of the 1960 shop manual that is available for download online. However there are many 1961 and later technical manuals, shop manuals and guides that can be downloaded at no cost in Adobe Reader (.pdf) format that should prove useful to you. The following link will guide you to those Corvair resources...
The following Corvair Forum link can provide you with a list of useful websites that should be helpful as a Corvair owner...
Common and Useful Corvair Websites
Corvair Forum
viewtopic.php?f=225&t=6007
A paper copy (reprint) of the 1960 Corvair Shop Manual is available and listed below...
http://www.corvair.com/user-cgi/catalog ... N&page=244
Part number C1415: 1960 SHOP MANUAL-EXCELLENT REPRINT* MIGHT HAVE NOS=CX5895 ASSEMBLY MANUAL=C7310
Weight: 2 lbs 0 oz
Catalog Pages(s): 244
Price: $ 29.50