Well, the Hayabusa makes 197hp in a 140lb engine, and has 1300+cc's. However, torque is a liability in such a beast, not an asset, so eliminating low end torque is a good thing. The car does not have enough weight to plant the tires on launch (1350lbs stock), and excess torque would make it less controllable. There are just so many wonderful variables to consider here (remember: this is more brainstorming than something I can do right now). Would you put the engine up front, driving the front wheels, or maybe mid mounted driving the back? I think the second option would yield a more controllable car, so I will discuss it here. Oh, and a Trabant is shorter (height) than a Smart Fortwo with a longer wheelbase, so it would be a bit more controllable. Plus, the roof is Duraplast, not metal, so the center of gravity could be kept low. The engine would low mount in the chassis, and a flat gas tank could be placed low in the car (under the hood or trunk floor, wherever it needs to be for balance), thus keeping most of the mechanical weight at about seat bottom level. Another neat thing about this car is that the front suspension, etc. all bolts to a detachable subframe, like a 1966 Chevy II. When fabricating the replacement subframe and suspension, it could be TIG welded from aluminum to cut another 20-40lbs off the nose. Ideally, the car would have a perfect 50/50 weight distribution when finished. The issue of a cooling system needs also to be addressed, as if it were mid engined, a helper pump would be needed inline with the cooling system. Additionally, lines would need to run under the car to get coolant from the former engine bay to the engine behind the front seats.The lines would be finned, to take advantage of the air passing over them to add additional radiator area. Now you could run a radiator next to the engine behind the front seats, and to the side, similar to a Fiat 850. It would get air from a tunnel under the car, and the whole engine area could be covered with a metal cover that would have sound insulation on it, like a Crown V8 conversion for a Corvair. Then we come to the issue of more power. Of course, 200hp in a 1350lb car is a little on the weak side. What it would really need is a turbo and intercooler for around 300hp, or roughly the equivalent of a 700hp G body in terms of power to weight ratio. But, where to mount the intercooler? A front mount in a "Pac Man" configuration with the radiator would be a good use of space, but would add too much tubing. It could draw air from under the car to keep a stock silhouette too. Oh, I forgot one detail: The quarter panels are not integral to the car's structure like most unibody cars. They unbolt like a Saturn. So, they could be hinged up to gain more access to the drivetrain if needed.
I will also add that should I actually go through with building such a beast, anyone who wants to help build it would be more than welcome. I figure there should be at least a few people as crazy as me who would just like to participate in building such a beast.