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neutral dropping isn't recommended for any car.
You're plain lucky you didn't drop the transmission rather than the IRS.
Either rebuild the IRS (and DON'T drop it from neutral to D at 4000 rpm!) or replace it with a custom corvette rear...it won't be easy to do the latter, nor inexpensive. The corvette IRS isn't known for its dragstrip reliability either, but a newer one from the C5 series, for example, should be enough for your engine. If you're not getting enough launch get a custom high stall torque converter.
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