cpermd, you can't just "add" a turbo. Don't even think about it. If you must have more power and want a diesel engine, sell your car and upgrade to a 1998-99 E300 turbodiesel (~175hp, 0-60 in 8 seconds.)
Also, "turbodiesel" had some slightly misleading information. Not all diesels are slow as hell off the line! The underpowered ones are - like the 240D, and 190D 2.2, especially the auto tranny versions. However most others are NOT slow unless there is something WRONG with them! Most should be pretty quick off the line, especially if the IP is properly calibrated, which does get more rare as the cars get older.
To check your car, clock it 0-60 and see what the time is, compared to MB's published specs. My cars do it in about 10-11 seconds, which is dead on with MB's numbers (10.9, 0-62); and your 1995 E300 should be roughly 13 seconds (you have about 15 HP less than I do.) 1985 and older turbos should be ~13 seconds (E-class) and 13-15 seconds (S-class). "Turbodiesels" SDL should be 13-15 seconds. If your numbers are too high, you have a problem and should fix the car.
Oh, and a turbo will last just as long as a non-turbo engine. What "turbodiesel" meant was that adding a turbocharger to a normally-aspirated engine will drastically shorten engine life - this is definitely true for the older OM617 engines, and I presume it would apply to your newer OM606 as well. The OM617's had totally different pistons, etc in the turbo versions. But the models that came from the factory with a turbo will last forever too!
HTH,