Olit,
Read this thead, it has some good info in:
http://forums.tdiclub.com/showthread.php?t=195434
Page 4, post #49 onwards is where it really "starts". The engine is pretty robust, the first issue you have to address is the gearbox. Note the dyno print out above. I believe the torque peaks at 3000rpm as it has been restricted at lower RPMs to save the clutch.
The stock gearbox and clutch combo is only good for 250NM, which can be broken with a strong remap. I suspect the car above is running he Sachs organic clutch (the only oher readily available aftermarket clutch for this gearbox), which is rated for 15% more torque (~287.5NM). Note the peak torque is near identical to this figure. I suspect if the torque hadn't been limited, it would have peaked at about 320 - 340NM at 2500RPM and destroyed the clutch...
The engine itself is fine at around 340NM once the gearbox problem is addressed (ie swapped to a 1.9 TDI setup and use a strong enough clutch). Do the math and figure out how much HP that equates to
Ash