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I just became a STS dealer and am doing a Fbody install now. This is the first Turbo install I've done but it's got me thinking about putting them on everything I have, including the wife's Yukon.
Turbo is the way to go. Position to the intake doesnt matter. Position so the oil drains back into the pan matters, otherwise you need an oil pump to do so if its mounted to low.
How much psi a stock one can handle? all matters in tuning. I think i seen one guy w/ 14psi on stock compression ratio, i dont think it lasted long though. I think the sensus is around 8psi stock. Swap a set of 6.0 heads on and it will lower the compression making it safer to run more boost on a stock shortblock.
My 5.3 bone stock shortblock in my nova has 6.0 heads which brought it to 8.6:1 compression and runs 15psi.
A good place to do some research is ls1tech.com in the forced induction section. You'll find anything and everything you need to know, usually with pics.