check out aircooled technology for the motor questions, but in a nut shell, yes, you can make the motor bigger, it won't be cheap...there are some people here that have built them for a lot less but details are sketchy
as for the suspension, what do you have now and what are you plans?
the stock suspension can be tweaked for very little that'll make it a world class handler...normally you make sure the safety related items are in good condition such as the ball joints and tie rods, then you move onto swaybar(s) and decent shocks and good tires.
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could i possibly piece together a turbo setup that would work?
I dunno, if you have to ask, then I'd say no, you cannot do it....once you read a book or 2 on the subject and do some more research and can fab/machine your own stuff, then yes....