Yes it will work, and work very well if it is set up correctly. I will assume you want to drive it on the street so I will lean toward that in the info. It is better to build the engine low compression if possible. It is possible to run compression and boost, but less compression will tolerate more boost and yeild more power on the same fuel. You want fairly small port intake and head ports as air velocity is what makes turbo motors work. Fuel injection is better, but for those of use on a bugdget a blow throuhg carb will work. Holley is the best.
The block should be o-ringed, and studded everywhere to keep things in place. The internals dont have to be any different than that of an N/A motor. As long as you dont rev to high(over 6000ish), turbo motors will generally handle more power on weaker parts.
As for the turbo, I could spit model numbers at you, but you should really go learn how to read compressor maps and learn how turbos work and figure out what you need. That said, Holset HX40 is good for about 650HP, Garrett GTP38 is good for about 550HP, Pair of Garret T3 60 trims are good for 650HP, and a pair of Garrett T4s will make anywhere from 600 to over 1000 HP depending on model. There are also T4's that will make over 600 HP alone. I would suggest you read "Turbochargers" by Hugh McInnes and "Maximum Boost" by Corky Bell to learn the concepts.
There are alot of things you have to understand to make a turbo motor work, so if you are serious start doing some homework. There is also a group called JYTURBO on yahoo that is a wealth of info.