The general problem with turbocharging the M42 is the EMS . As stock ECU uses AFR to meter how much air is there flowing Your engine, You need something related to the pressure made there by a turbocharger. So You need MAP related EMS. And as the M42 is the distributorless system, You need the EMS capable of controlling ignition as well...
For now the cheapest EMS I've found is
http://www.vems.hu - It's an open project with it's pluses and minuses, but generally it works, it is cheap, and completely configurable. Check wikipedia for great documentation...
So If You want to turbo this car cheaply, You should go rather big turbocharger, use custom built exhaust system, with as low restricting flow as possible, to avoid going into big pressures. Remember - You make the power by the air flow through the whole engine system, not by the pressure itself. Then Use as big intercooler as possible to keep the air temperature low all the time.
Going big, means low restriction and ability to stay with stock C/R - and as it is 10:1 in our engine it means that You won't be able to go higher than 0.6 BAR in the intake manifold without detonations in the combustion chamber...
This should let You achieve 220-250 Hp's... Which is still not too much for the transmission, clutch and the braked to change for more durable ones...
In that powerlevel some says that it is better "just" to tune the engine well... The truth is that with proper tuning You can stroke, bore, use stock EMS and more agressive cams and You will achieve the same powerlevel without a lag specific behaviour.
But nor low restricting turbo nor highly tuned engine isn't cheap.
In cheap turbosystem You can use Your stock pistons. You just need to cut them on the lathe to lower C/R a little bit. Then go VEMS or one of the last generation of the MegaSquirt /if it supports ignition control/, then use bibbig intercooler and there You are with the cheapest possible option I know will work. But the engine before the modification has to be in perfect condition...
Volvo 740 has a diesel engine... And this is a small diesel engine... So it will probably end acting as a turbocharger just below 3000RPM's... When You will go above this turbocharger will have definately too low flow to act there well... It would rather chop Your exhaust system well enough to guarantee You some nice detonation problems and no powergain...
But theese are my private thoughts...
Check them well...