what do you know about their pump?
Talked to the owner of the 270-hp 1.6, he has a 1.6 pump with a 11 mm head, modified governor and LDA.
The turbo is huge, and it makes the power possible along with a well-built pump and cyl. head, but it's basically only good for drag racing ( so he says ) because the power band is so narrow.
About credibility - it can be difficult to believe these numbers - but it's all 100% true, and the dynos that have been used are conservative even. Why, 1.9 TDIs have been made to produce 400 hp, and they don't rev as high. 270 hp on a 1.6 diesel isn't
really all that revolutionary, remember that turbo F1 cars used to have 5 times that much on their similarily-sized gas engines. Five times!
You can make huge power on any engine if you know what you're doing, but that's just numbers.
Ideally you want an engine that has a good power and torque curve, even if the top end suffers a little - unless you're on a drag strip every time you drive the car, that is.
In my humble opinion though, anything over 240 hp or so on a 1.6 will not be very street-diveable.
That kind of power will require such turbos that will spool up very late and slowly, and that's why these are racing-only machines mostly. But turbo technology is again going forwards these days...