e46fanatic, agreed, thats why i'm not too much of a big fan of the s54 engine in the e46 m3. its dimensions in bore and stroke lends itself better for a turbo application with lower redline. the engine characteristic would be very similar to that of the 4g63 from the lancer evo, being an undersquare engine too.
if you want to look at a company that has consistenly got it right in their stroke for high revs, its honda. for the f20 engine in the s2000, honda gave it a bore:stroke of 87mm:84mm for max of 240ps at 8300 rpm and a 9000rpm redline.
even for the k20 in the integra and civic type r, its 86:86, a square engine as used by many other legendary engines like nissan's sr20det and toyota's 3s-gte in its latest incarnation in the caldina.
naza2: its quite simple. power is product torque and rotational velocity. 260nm * 22,000rpm * 2 * pi/60s= 598.997kW= ~800hp.
and usually for naturally aspirated engines, if its quite ok, it should give 100Nm/L displacement. question is either it makes this figure at high rpm in which case it will get a good hp/L figure, or at low rpm for massive torqueyness. but turbos...
thats another story. no replacement for displacement (for the poor man who can't turbocharge-and superchargers for the not quite theres).