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I seriously doubt you'll hit 350 with low boost. From what I've read at least, I don't have much personal experience with the MR2 engines.
You might hit 350 with a V6 with low boost....but you're going waaaaaay into the deep end on that one, loads of custom fab. I can't think of any turbo V6 right now, I'd have to try to look it up.
Really you don't need 350 horses, the MR2 is really quite light and unless you want to drag race competitively you shouldn't need anything too much crazier than stock.
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