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The whole EKZ ignition setup is an unknown area for me, but I really feel that it will handle wastegate controlled boost at 5-7 psi just fine. So, if I were you, I'd keep your stock ignition, for now. If later on, you feel that you need to venture into the 10+ boost zone, as Kevin K. suggests, go for the MSD BTM, I can't see any reason for it not to work.
I'm using the stock turbo injectors and I suggest this route for you too. I didn't even try the stock N/A injectors, but feel that they aren't up to the task without a RRFPR and that's an additional $250 that you do not need to spend.
If you can work out a deal at the U-pull-it and if it's there, I'd get the complete intake setup from a 16V turbo, including the intercooler. If you do get the intercooler, underneath it there is a mounting plate, that you need, it is riveted in, use a cold chisel or portable drill to remove it, you can screw or bolt it into place on your car. Even though 5-7 psi is modest, I can't see any harm in using it, especially if it's cheap and easy to put in.
I'd pass on the oil cooler for now, but it wouldn't hurt to get the filter housing with the hose ends that fit into it. Just cut the hoses a few inches beyond the fittings. Later on, if you feel the need you can add an oil cooler, I'd just mount one up front, aftermarket style.
If you can find a good plain Jane oil cooled turbo, I'd go for it, I've not noticed any difference in life between these and a watercooled turbo. Actually I've got a stock '85 turbo that I bought new in Germany, 300K+ miles, original turbo, the head has never been off it and the oil (dino), still looks clean when I change it every 3K miles. This engine still has 155 psi+ compression all around, it was 165-170 when I first checked it '86. I've run three '85 turbos over 250K miles and never replaced a turbo on any of them. My experience is, that oil darkening is usually from excessive blow by or a PCV problem.
I'd get as much of the turbo exhaust system that I could, for sure get the header, hanger from the trans, and cat. Mufflers don't last long in turbo cars because of condensation and the intermediate pipe tends to become permanently attached to the muffler, but the tail pipe is usually easy to salvage. So spend $75 and get a new muffler and intermediate pipe.
The only real tips I have is to make sure you have everything you need, before you start the conversion and make sure that you remove the small freeze plug for the oil return line while the exhaust is off. It might be a good idea to take some pictures of the turbo engine as you disassemble it.
Feel free to email or post here if you have any questions. Let us know how it goes.
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