yea, taht sounds like a cool project, but IMO, the v8 is NOWHERE near as good as the v6, i mean think about it, its a freaken VOLVO engine...plus it only has about 15 more HP then the v6.
Actually, no, the SHO V8 was 4/3 of a 2.5L Duratec V6.
It was (much later) used as the basis for the Volvo 4.4L V8, not the other way 'round. The Volvo uses the same bore spacing and the same stroke (might be the same crank for all I know) and I think the same deck height as the SHO 3.4 but a MUCH bigger bore and a VERY different block (die-cast, open-deck, siamesed linerless bores with maybe 5mm of gasket between the bores, the SHO 3.4 has half a mile between holes), the Volvo does away with the silly Duratec front-dress and cam-driven water-pump. I once posted some comparison pics of the Volvo vs SHO engines and blocks, maybe it's still out there, maybe it got eaten in one of the forum crashes.
The current Volvo S80 with the V8's a nice enough car, not going to make anyone think it's a 550i but if you live in snow country it's probably not a bad way to get around.
But, yeah, there's a lot of "what the **** were they thinking?" in spending a pile of money building a 3.4L 235HP V8. If they'd just used the 3-liter Duratec bore it'd have been a 4-liter motor, should have been well capable of at least 270-275HP in very mild tune. I still think that with some creativity and a sizeable bankroll it might be possible to build a 4-liter SHO V8, you could use off-the-shelf 3.0 Duratec pistons and maybe rods but the block work, custom-engineered sleeves, billet cams, lots of head work, maybe some trial and error getting a balance shaft that'll do the right thing with the different reciprocating masses, bring $15-20K to the party or don't bother showing up.
Of course, the problem for Ford in doing something like that in production would have been the lack of a transaxle capable of handling that output, and endless one-wheel peel with an open diff.