Put the turbo up under the rear inner wing in front of no'1 cylinder - fits nicely. Have a look at Mark Thurstons Oval on
http://www.lbc2.com - there's a pic of the engine on it's own which shows the turbo position nicely
I wouldn't want to put a turbo in the engine bay with a closed engine lid - all that heat the turbo will radiate into the air that will be sucked into the cooling fan
Moog