What happened at the end of the clip, is all that smoke caused by the car breaking traction at it's max HP or somthing blowing up? I've never seen a dyno run before.
That's just tire smoke. It happens quite a bit, if the rear of the car isn't held tightly enough to the drum rollers. Basically, it's indicative of a traction problem (which ought to be obvious with 1000+ hp on tap). I've seen this happen with less than half that much power on tap. The Grand National runs a 3.8l V6. That car sounds like it has a V8 in it (that exhaust note is textbook small block Chevy), and judging by turbo placement, I'd bet it is. The HP wars have gotten out of hand, IMO. People are building "street " (that are neither driven on the street, nor streetable, per se) cars that lack traction in 3rd gear (at upwards of 100mph), which, to me, is losing the sight of the big picture. Not to mention, I see a lot of guys ruining their credit (and in some cases, personal lives) over the addiction.