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Yeah, kind of a late post, I hope u get this... For your questions:
Boost handling: The engine apparently can take quite alot of boost, thought I don't remember the numbers right now. U can go here: http://mcbrooms.com/volvo/fast700.htm to get some sweet 740 performance tips.
16v Head on Turbo: It takes quite alot of work to retrofit the 16v head onto the turbo block, but it has been done. This site: http://wwwrsphysse.anu.edu.au/~amh110/16_valve_turbo_volvo.htm will be able to get u started, but there's not alot of info on doing this. However, u should be able to achieve 200 hp by combining the 16v and turbo. I have a 16v manual wagon, and that's 153 hp by the book, it picks up pretty well. 200 hp is gonna be loads of fun!
Torque rear axle: It can handle alot of torque, people have souped up their Volvos to insane levels of horse power (400+) and thus insane levels of torque without changing the rear axle. Remember, your car weighs nearly 2 tons if it's a sedan, and over 2 tons if it's a wagon. And it's rated to tow 3500 lbs. That's alot of pressure on the rear axle and differential. So unless u plan on putting a V8 in ur car, u are probably good with the axle u have.
Seats: No clue! I'm sure u can retrofit most seats, though. Try finding some 850 R seats if u can, they will be very good at keeping you in the seat during hard cornering, or so I am told.
Switching the front end: Again, no clue. I know more about engine than body. It has been done before, but I can't find the link...
Skidpad: See above... Do a google search...
Biggest tires: I think u mean rims. U don't want bigger tires or it will screw up your speedometer. You can get up to 17 in rims with the appropriate size tires. People have put 18 in rims on their older Volvos, but nearly all have had problems with rubbing, it's just too big for the car.
Springs/Shocks: Definitely the lowering springs. Nivomats are cool for loading and stuff, but they aren't good for performance. The lowering springs will lower the car's center of gravity, allowing for better handling. Go with Bilstein shocks. I personally have a pair of these in the back of my car coupled with overload springs, and that alone gave me about 5 mph extra that the car is capable of doing in a turn. I also have very high traction tires.
Brakes: I have gotten slotted brake rotors and high performance pads on my car (slotted only front, pads all four), and the car brakes very well. I don't know of any oversize brakes, but people have retrofitted 960 brake calipers to 740/760 cars with great success. It seems 960s brake much better.
Here's my suggestion: Get anti-sway bars, chassis braces, lowering springs and bilsteins on all 4 wheels, 17 in rims and high traction tires. For handling, your car will run circles around civics at that point. All these upgrades can be gotten of ipd: http://www.ipd.com/ U can get the slotted rotors and pads there as well. Hope this helps!
Please note: all this information has come from my own personal research. I have ABSOLUTELY NO professional experience in this area, I cannot be held responsible for any damage done to your car using tips I have written here.
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