Yes it does Scott, thats why the pd engines make less power than the hdi. 
Personally, I think if you're going to all that effort, you'd be best off going for an early 2.0 16v. From the research i've done they seem to be the easiest to convert for the power you get without chronic amounts of emissions nonsense to fight with.

Personally, I think if you're going to all that effort, you'd be best off going for an early 2.0 16v. From the research i've done they seem to be the easiest to convert for the power you get without chronic amounts of emissions nonsense to fight with.