I had an '83 5000 TD once. It actually had decent power. Those cars only weigh around 3000 lbs, so 130 lb./ft. of torque moved it along pretty well. As far as performance potential, there's no reason they shouldn't be capable of 150 HP and 250 lb./ft. The engines themselves are damn heavy. A lot more than 25% more than a 4-cyl. I think they're very stout, and can handle that kind of torque.
These older 5-cyl TDs use mechanical lifters, so I'm not sure if the passages in the head gasket are compatible with the 2.5's. Any info you have on the pistons, and whether or not these engines can be bored to that size would be appreciated.
I agree with turbinepowered. Find a 2.0 N/A and convert it to TD. In fact, they did make a few N/As with the 12mm head bolts. You need one with a serial number of CN 066 382 or higher. They may already have the TD heads on them. I can get the part number for that too if you need. The other thing you want is an old (e.g. 82'-'83) turbo-gas doner engine to pull the oil cooler/filter/turbo braket off of. You can also get the oil piston squirters out of it and maybe the turbo too. I assume the gas-turbo is bigger than the diesel-turbo, but that's probably ok if you intend to pump up the power anyway.
I tried to sell my engine on eBay a few times, but people didn't feel it was worth $1500. Seems kind of crazy when you think about how many applications it has (e.g. Quattros, Eurovans, etc.).