S4 will handle the HP,
I have some S4 outlast S4D in the same car same driver, same motor,
Couple ways with the single turbo, one is E85 with this you dont need a inner cooler, it is better to have one but do not need one,
Everyone wants straight pump gas, not going to happen, you sneeze and can get detonation,
Pump gas options would be a Meth Inj, or mix in some race fuel to make a true 93-96 octane,
Compression can be your friend, no one like a lazy friend, and that is what low compression feels like, I would not go below 9.7-1 comp
A great motor without breaking the bank, would be a 402 or a 416, Inconell Ex, Valves, would use a Great lifter, and a Great spring, for a Turbo, i only use a Johnson lifter and a PAC Spring, keep the Bearings on a looser level and A Hi-Volume pump,
I have had many motor with a Kennedy Dual 9'' with no issues, The biggest lesson i have learned on turbo motors is #1 use a great injector, do not cheap out, #2 Make sure the bearing clearance is correct, #3 control the valve train, #4 dont use a cheap fuel pump,