the b16 works but you'll lose alot of torque and wont gain as much from boosting as you qould from a similarly priced 1.8 or 2.0 setup.
if you start off with the GS-R engine you bascially get all the goodies, the nicer p72 (b18c1/GS-r) head, you get oil coolers (tho for forged pistons its not that big of a deal, they can take much higher temps) and you start out with everything you need for a high revving engine already.-- all you really need to worry about is building for boost vs having to worry about building up and putting a vtec head on a non vtec block and all that other fun stuff.
as for the 1.8 vs 2.0 argument, yes the 2.0 will make more power, but i'd have to say all in all it's better to just go turbo with a c block and vtec head. you seriously can drop just as much money into your turbo alone to make the gains of the .2 lost liters laughable. not to mention the lower ammount of mass on your rotating assembly.
anyone who wants to fight about this can, but they wont find much fight from me, honestly it's just like getting from point a to point b, there are a million ways to get there.
the wayi would go about it:
B18C1
turbo on 15PSI
pistons and sleeves to comp ratio of about 10:1
PnP job on the head
nice lighter flywheel, and a high-moderate clutch (make sure that it's rated to 300 crank at least)
new rods
high volume oil pump
LS transmission with a modified FDR
new axles
upgraded suspension and motor mounts.
FMIC
-- just a small list i took off the top of my head