The only problem I see with locating the turbo so far from the engine is that you will lose most of the thermal energy that the turbo would normally use. This thermal energy helps to spin the turbine wheel faster. With having the turbo located further from the engine, response would be in the toilet - CAN WE SAY LAG?!?!?
More pipe in between the engine and turbo means more response time which also means less power down low. If your worried about underhood temps, Use thermal wrap on the exhaust components and put some heat extracting vents in the hood.
By wrapping the exhaust and keeping the heat in the exhaust stream you get a small hp benefit anyway. Part of the reason they ceramic coat headers. There is PLENTY of room in the engine compartment on a zetec Contour for a turbo to be fit in. Even more if you get a focus 4into1 shortie header and make an adaptor plate for the go between (shouldn't cost more than $150 for the header and the adaptor piece).
Of course you could always opt for a stock focus exhaust manifold to use for your project, alot cheaper.
