If you pick the right turbo, you'll have very little time off-boost and so the smoke won't be a problem.
I have a JDM engine which has a boost compensator (reduces fueling when there's no boost), I suspect the pumps without boost compensators restrict fuelling based on rpm, this would be the torque plate's influence.
The GT2560 (basically the new version of the old T28) is a good place to start, but I went even smaller on mine (GT2252 is the new equivalent of my T25).
It won't bolt straight up, but I have an adapter design which will make it fit.  See this thread 
http://www.aulro.com/afvb/isuzu-land...o-install.html for pictures, PM me if you'd like a copy of the drawings.
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