There's certainly been some questionable tales around this specific car. Despite all that, it still looks like a nice starting point.
With a 240, as long as the body is decent, the rest doesnt matter too much I guess.
As @Major Ledfoot mentions above, there's a bit in getting a 16V head on an 8V B230 bottom end. All achievable, but there's a bit in it. You'll also need to consider the timing belt tensioner requirement. You can address the distributor issue via a short bodied housing (ie. having it machined) and a Saab cap (if you're using a distributor.
Regardless of how far you go with it, while a stock 16V head will out flow even a fairly developed 8V head, you're not coming near 600-700hp.
@jared244 has done 16V 240 conversions so could be someone to reach out to in order to provide actual experience and may wish to chime in here too.
In terms of suspension, regardless of your intended application, you're likely to not be particularly happy with the rear spring rates supplied in the BC kit. Damping is 'ok' but not brilliant. Happy to provide advice into this if you would like it.
Regarding brakes, there's a few options now for the front of 240s - a couple of different Brembo arrangements that are easily enough available, including the Brembo P2 S60R 330mm brakes and also GM-branded Brembo four piston calipers upfront.
The BA-BF Falcon sliding front caliper is actually a good upgrade here (despite being a two piston sliding caliper replacing a four piston caliper) - pad size is larger, rotor is larger, bleeding is easier and there's heaps of them available, and... they're cheap.
Beyond that, there's the series IV RX7 caliper upgrade too that uses 740T rotors. The issue here is that series IV RX7 calipers are becoming sought after.
Regardless of the history, backstory and even the drama that a few of us are across to varying extents, a nice looking 240 is still a nice looking 240. Best of luck with the project and this forum will be of great use to you in getting it done.