It would work but you would have to get a lot of parts fabricated (most notably the up and down pipes). You might be better off with either a pre-made kit or using a TD04 from a WRX (which you can buy up/downpipes for from http://www.uniquemotorsports.com
...and, BTW, this post belongs in Aftermarket Forced Induction, not Other Factory Turbo. (This forum is for Subarus that come from the factory with a turbo that are NOT 2.0L (WRX) or 2.5L (STi). Aftermarket Forced Induction is for turboing/supercharging a previously naturally-aspirated car.) So try posting there and you'll probably get a lot more help.
Shane -- http://www.warpthree.com