Joe,
The only reason that the IC is in the wheelwell is because of space up front of the radiator. (Or lack thereof actually!) I was able to drill a 4" hole and a 2.5" hole behind the grill, right next to the headlight that will provide most of the air to the IC. The rest will come from under the bumper. Should be plenty of air for a 300hp motor.
As for the length of piping, my turbo '86 Mustang with a 302 has much longer plumbing. The "lag" will be minimal. And with a 3500 stall converter....who cares! By the time the car starts to move, we'll be well into the boost!
Later,
Will