small blocks are on some kind of porting and slightly elevated compression over a stock 600. Turbos are sensitive to porting (not that you can't port one and have success because I have a radical 670 rotax that is turbo nitrous and ported and it hauls the mail)
I think that the 685 is a great idea... but I am going to give you a little different perspective on it. F-bomb is right, turbos dont like the porting that typically would be on a BB small block. You may be looking at new cylinders or if it is possible getting your cylinders ported for the turbo. Porting for a turbo is sketchy IMO. Some have done it/are doing it, but I dont know if there is really that much to gain. In the end, a stock porting is the most reliable. I just hate to see people being guinee pigs(sp?). Unless you have very deep pockets to support that.
One kit builder told me he spent $30,000 in motor parts to get a sled running perfectly. Think about that for a minute.
Essentially you have a 700 turbo and when we spent some time testing the offerings from Boondockers the 6 and the 7 were so far off from the 8 that it just didn't seem that exciting a prospect
I find it hard to believe that there was that big of a difference between the 3. That has not been my experience. Some of the kit builders will even tell you their 7's will out run their 8's. Yeah, doesnt make sense, but I have seen it before.
If it was me here is what I would do. Obviously you are not afraid of a carb turbo. Contrary to most belief, they are very simple and easy to tune. Sell the little small block BB, and buy a old carb 700 or 800, your choice. Lets say you can sell your small block for what 1500+. You can pick up a 700 for under a $1000. Then drop that in your chasis(very simple task), and do a turbo version of that. The only disadvantage would be the added weight, but you are adding a turbo and a bunch of other parts that will add up too.
This means you would have the same or more HP than the small block. You would then be back to stock cylinders... easy to find and cheap. The 7-800 set up is already proven and your not reinventing the wheel.
this is just my opinion... if you want to turbo the small block... go for it, but be ready for what could be some frustration and lost riding time along the way.