The AE86 is a really fun car to drive. It's very balanced and stable once you update the suspension. The 7M-GTE isn't too popular of a conversion because it throws off the balance of the car, and it's a really tight fit to make it all work.
The video is a rip from the TRD Drift Bible or something like that. Maybe it's the AE86 Special Edition from Best MOTORing, vol. 48 and 49, if I remember right. That TRD car has a 20V conversion that's taken from the later model FWD Corolla GT-S. It makes about 180hp if I remember right. It's not that much more power than the standard 110hp car in my opinion. Not worth the effort to do the mod, except for the nice n/a sounds.
My old car was turbo'd to about 240bhp at the wheels. Stripped down to 2000 lbs. it was a fantastic sleeper. Sold it to a drifter, who drifted it into a K-wall at a drift competition.
My turbo build-up:
http://www.geocities.com/MotorCity/D.../PROJECTX.html
I miss the car...it was fun.