8 psi on a 2.5?

[Christ]

I'm looking at a '97 BMW 325i that smokes a lil bit.. the guy said I could pry get it for like 4 or 5k, but it would soon need a rebuild.. my questions here are:

1. Could a stock 2.5 liter feasibly handle 8 psi (turbo) as a daily driver, with mild-aggressive driving style?
2. How much would the full rebuild kit for the engine cost, including new seals, rings, bearings, etc.
3. Does anyone make a metal headgasket for the 2.5, or one that will fit from another company?
4. Are there any other upgrades I should consider, like a stronger clutch, stiffer suspension, etc., for mild-aggressive driving style with this car?(I'm already getting 18inch rims with 235/40/ZR18 tyres, at least I think that was the size I needed to maintain the stock diameter...)

Thanks for the help, any information is greatly appreciated, as well as other specs that I may have left out that would be helpful in determining things I can do to acheive my goals with the engine.