You will need the inner fender panels to make mounting your fender easier. As Jcarter said you will have no problem with clearance with the engine but you will need to cut out for an IFS if you use one. I had to notch out for my pacer IFS but also had to make a circular bump out on the inner fender wall to give clearance on the power steering pump. I bumped it so I wouldn't have to worry...I didn't like the fender wall being about 1/2" from the pump.
Others who have put a chevy small block should be able to help more with the engine clearance. I went non-chevy and am sure very few have done the same.
