The rule of thumb is that you don't want to go more than 10psi if you are are at 10:1 compression. A higher compression ratio will gain you more power per psi of boost...but it will also detonate that much easier. A properly set up turbocharged(supercharged is not as efficient in many ways) engine can make 20HP per psi of boost....but neither psi or HP/psi is that easy to nail down. For instance 1psi of boost is a lot more air on a TDO6 compressor than it is on a TDO4 compressor. Air is a fluid...pressure is not all that matters, volume plays a huge role in the amount of power per PSI produced, as does intercooler efficiency, etc.
The more important question than boost is why in the world are you using a LS engine? Sure, they make a lot of power, no one is arguing that...but you are talking about swapping one into a classic mustang. Aside from the hate you will get from many people(I couldn't care less), while its a fairly easy swap as far as swaps go, its STILL an engine swap...all engine swaps are expensive(relatively speaking) and come with many challenges. If your goal is 500HP from a stock engine, you are far better off grabbing a stock long-block 351W and turbocharging it. It fits with minimal work and will have no trouble handling the power.
But the most important question is...why do you want 500HP? What is the goal? 500HP is just silly to have if you aren't building a race car of some sort. The problem with building high power, high strung engines is that they generally have bad fuel mileage and are unreliable....all so you can drive around on the street and never use it? I speak from experience here...been there, done that, it was a stupid waste of money, ESPECIALLY when it comes to vintage cars. These cars are NOT competitive in any type of racing without fairly significant modifications. If you want a 500HP LS engine in a racecar I can think of half a dozen cars better suited to it depending on the type of race car. No...you are far better off building something reasonable(mid 300s in HP) without the complications boost ads and spend the majority of your money upgrading other things on the car.