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I'm a bit late with my $.02.
re: hopping up an A4 - 1.8 or otherwise.
I agree that you want to maintain a degree of driveability
and durability - which IMO rules out 300 HP in 1.8l engines.
I'd seriously question its longevity, and the high boost
might require significant timing retard - which means
poor low end torque. That was my experience with
turbocharged VWs, anyway.
However, the 1.8t has better torque down low than the
2.8l 12v, and, due to its turbo, can be hopped up by 50 hp
or so easily (see, I think, TAP). 200hp in the A4 would
be quite nice.
Another option is to wait for the 2.8l 30V or the turbo S4.
I'd guess the 30V will be $2k more than the 12v (others?)
and the S4 will be $5-6k (again, my guess) above the A4 2.8.
On the other hand, the A4 1.8t is about $3k less than the
2.8, after you buy back the sport package (you do want
the better suspension and 16" wheels, right?).
I would not try for gobs of power from a 4-banger,
and I would never spend $10k on twin turbos aftermarket,
unless you really know what you are doing (and then,
why would you be asking us?).
I would guess the money you save might be better spent
on better dampers, if Audi's shock valving for the A6 is any