Scott:

The heads are interchangable, and maybe the crank, but the block for the turbo is different, as are the oil pump, pistons, etc. May and may not have the same cam.

As far as the engine swap goes, do the whole thing -- complete engine and associated vacuum/pressure controls, manifolds, air cleaner, etc, out and in. You will need the vacuum modulator setup for the tranny, too -- it is different than the non-turbo.

The engine will drop right in -- GP the same, etc (unless you have an old series glowplug setup). Nice way to "graduate" to a turbo.

__________________
1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!