since you brought back an old thread..
if people are looking for n/a power out of the 1.6l, using a stand alone engine management system and aggressively tuning the air fuel ratio and ignition timing with race gas, E85, hell even 93 octane pump gas could probobly get you close to 130HP.
Think about it, the stock ecu is tuned for people that run 85-87 gas. Add a cold air intake and good fuel to resist detonation and there would be plenty of room for improvement even using the stock equipment.
Its all in the tuning. Shaving the head would be a cost efficient way of bumping the compression also if you can afford some downtime.