What if any are the differences between the 89 turbo engine and the 89 non turbo. I've got a rod knock, busted piston skirt, broken valve spring or something in the cylinder. Not sure which but anyway I have another 89 non turbo engine available to me and would like to swap all my performance mods onto it. Possible?

You'll lose the turbo oil return line on the block and the piston oil squirters. You could possibly tap the turbo oil pan for it and make it work, with the turbo pan and oil filter adapter you'll also be able to keep the oil cooler. Also you'll want to buy a new piston or an entire set to replace the busted turbo one, keep the higher compression in mind when thinking about using the N/A pistons. Other than that just swap everything over, injectors, CPS, manifolds, ect ect. There are a few other minor difference but there nothing to worry about.

Just found out the other engine I have is an 87 still swapable?

All the engines are basicly the same except as described above, the only difference between years are the engine harness/ECU.