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The loom isn't that great an issue, if at all. If you are going for power you might as well get a decent aftermarket engine management set up for the uprated injectors and turbos to get the most efficient setup.
Gearbox wise m56 is the turbo gearbox from 850turbo, same/similar internals to the rearwheel drive turbo box hence being able to but the 850 t5 engine in to a 7/9 series.[has been continued] The M58 box is an m56 with an output shaft for the rear wheels. So the benefit is increased traction of using the rear wheels. In theory that means you can use later awd boxes to...then you might as well go to a modern engine that way more power at a smaller price.
There are two types different options for buckaroo to look at.
lynx
@Dammit
M56 gearbox won't work - you'd need an M58.
Turbo loom is different to the NA and that V70, whilst sharing the 850 chassis might be an ME7 car with the drive by wire throttle, which is a PITA to tune compared to 4.4
Finally that AWD system is a) likely broken and b) an unwanted 90kg.
New posters ask for the best way to turbo their NA 850 on Volvo forums quite frequently - the answer is always "sell it and buy a turbo".