an intercooler from a 6.0 and or one from the newer 7.3 will fit with some modifications, most people use the 6.0s because they were a better fit
The kits will only add that kind of power if you have a TON of fuel going into that motor! You are lucky to get a stock 97 to make 200 hp stock. Air only allows you to burno more diesel. Diesel is what builds power, not air. Now, that said, will it help a truck out, yes. Better mileage, cooler egts, room for more fuel. I have sold a few of the Banks units with good results.
According to All-Data a 1996 has 215 HP and 450 lb.ft. of torque. But for some reason they don't show the spec. for a 1997.
Either way, you are not going to double the output of the motor by adding an intercooler. You need to add fuel to make more power.
The 97s are the bastard year.. It was left over parts from the 96s and new parts to the 98s.. I believe they didnt make any diesel F-250s for that year, (1 year they had the f-150 design) so that means you could only get a F350 diesel in 97.. Auto Part store have issues reconising the 97s.. I also believe The 97s HP was between 235-245hp and 470-490 torque, I will have to look at the ratings again
I wish people would stop spreading this crap around. It is absolutely NOT TRUE. There was an F250 LD, new bodystyle (bastardized thing you mentioned with 7 lug wheels). And there was an F250 HD OBS that did come with a diesel. Guess what else, I've got one, and have never had a problem getting parts. Dan
Also, there is no such thing as a 98 Powerstroke. 97 was the last year of the old Body style and then they jump to Model Year 99. Like posted, the 97's are great trucks, probably my favorite Ford. I have driven many of them, worked on several, and nearly bought a few others!