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@bq
Probably is, but turbos, intercoolers and all that shizz will add weight. While it's out of the car get it weighed and then you can see if it's a crap idea or a great one.
The other thing is the height and length compared with a B series. As well as the weight one of the reasons (iirc) that the MGC handled so badly compared to the MGB was that the length forced a different (torsion bar and telecopic damper) front suspension.
Sounds like a bloody good idea though. make a nice change from another V8.
The other thing that might be a great home for your Volvo engine would be a Marcos.
http://www.rory.uk.com/index_files/Bblack.jpg