I like where you say you are lost. You are right!

No verification of 225whp has EVER been produced. Pure rumor. We have data from 180-210. I am sure there are lower versions out there - but who cares? The beauty of IT is that you can run your stock motor and have fun until you build to the limit of the class - then, and only then, should you expect to run at the front, should the driver be up to the task.

Did you read DJ's post? 180whp is NOT a good effort for a E36 325 in IT trim. EVERYONE KNOWS THIS.

Your numbers example is a tough one. Is that car competitive? Nope...but it is 25-30whp off the mark right from the start so even if it ran unrestricted, there is no way it could compete with properly built stuff. Get in the game.
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A good build with a chip only makes 198.6 on a dynojet with SAE correction. I know the owner and trust the numbers. The AF numbers on the sheet posted suck for power so try another example before you cry foul. The power curve is ragged at best before SIR and gets no better after. Total BS to use for any real arguement. I can make a Mazda dyno suck that bad if you want to use equal numbers. AB'S statement about this prep level is correct.