If all you have is $1500 for the full turbo setup, you should probably look elsewhere. The parts alone will be around there and then you need to factor in an engine management system along with dyno tuning.

If you are still set on turbo, rebuilding the motor is the most cost effective option and will give you a nice fresh engine that will not give you any problems once the turbo goes on.

As you mentioned, you will most likely need a better suspension setup to handle the extra power and most likely a better clutch and wider exhaust. It isn't a very cheap route, but in terms of bang for buck, it is the best option.