Thinking of Turbo Charging my 6 and have a few questions...
Pretty much anywhere so that it has a decently straight drop and drains the frothed oil easily and freely. I have run some Mitsu 2.6L turbos and they drain just into the upper edge of the pan right below the turbo. The big thing is to not kink or restrict the drain and make it back up and push oil in to the intake.
BTW, for power adder, just as a guess from some air flows from a spreadsheet I did up for this range of turbos, maybe 40ish HP if you push the boost up to 10-12 psi. I would start myself around 8 and work up from there. BTW, if you start with an 8 psi wastegate control, you can engineer in a controlled, variable air leak in the manifold pressure line to the wastegate and use that the trick the lower pressure wastegate to open at a higher manifold pressure; it is the easy way to make a variable boost control... within limits. You can buy such valves....