one of these, just to keep the greenies happy

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properly tuned expansion chambers would obviously be added for a lot more hp

HOLLY SHIIT! that thing is wild, would love to hav seen tha tacho and the power it made?

The reality is that $20K isn't that much for a no holds barred project. Depending on the motor choice and car choice the chassis engineering alone could easily surpass that.

yeh 200hp isn't a whole lot for 2 litres of 2 stroke, even the standard 500cc road bikes mad 135 odd hp and the moto gps well over 200hp. seems weird it doesn't have expansion chambers, most 2 strokes barely make power at all til they hit powerband.
20g's is a pretty standard build really but if that was my limit i would spend say 6g's on a hayabusa motor, 4g's on a winters quick change diff, say 3g's for parts like the tailshaft etc. and say 2g's for all new suspension arms fully rose jointed and all that. then say 2g's for interior parts such as seats, steering wheel pedal box etc. then about a grand to get it painted. the remaining 2g's will quickly get spent on minor things. this still leaves you to do all the work apart from the actual spraying of the car.

80's and 125's seem to lack down low grunt but 250's and above seem to pull nicely from down low before they go ballistic, especially ones that are well tuned. That V4 would be capable of close to 300hp if everything was done properly, nice and lightweight too, with a lot less moving parts compared with a 4 stroke.

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*shakes fist at more readily available heritage crossflow racing motors then what Nissan offered... :P

If money were truly not a problem, then a Hayabusa 2.6L V8 would be where I'd go. Indy style.
Hayabusa V8
Holy Crap Hayabusa V8

or th westfield supercharged 2ltr yamahar R1 V8