"anyone know if the turbo legacy 2.2L engine will work with the Kennedy
engineering Subaru mounting kit?"

Yes it will.   The 2.2L turbo is not a good motor to use for a vanagon due
to the torque curve for that motor.   It needs high rpm (>4000 rpm) before
it really starts to get into it's torque band.   The 2.2L and 2.5L normally
aspirated motors are great for the conversion.   Also the 3.0L and 3.3L
flat 6 cylinder motor are great motors (tons of torque).   A couple 2.0L
turbo WRX motors have been placed in vanagons, and with torque coming in at
lower rpms (around 3400 rpm) they seem to work out well also.
For more information on putting a Subaru motor in a vanagon you should go
to a few websites:
http://autos.groups.yahoo.com/group/subaruvanagon/
http://www.smallcar.com/
http://www.kennedyeng.com/
http://www.mcn.org/b/roadcow/convert.html
There are many more, but these are a few of the better ones (including mine
of course).   Hope this helps.
Matt
'87 Westy/'90 Subie 2.2L

My website:  http://home.earthlink.net/~subaruvanagon
"Life is a journey, explore each day and treasure every minute given to you"