That's pretty awesome even though it's powered by compressed air and not an internal combustion engine.
The best scale engine I've seen was this guy Pierre Scerri who built a 1:3 scale Ferrari 312 PB from scratch. The story I heard years ago was that he crafted everything (there is even a 1:3 scale key to start it) except there were some small parts for the gearbox that he didn't have the tools to fabricate. Apparently an engineer at Ferrari heard of this and offered to fabricate the parts he needed to complete the model. It's pretty amazing:
https://www.youtube.com/watch?v=SeUMDY01uUA
Also these guys make some incredible little IC engines for RC cars:
http://www.conleyprecision.com/
Check out their supercharged V8
:
https://www.youtube.com/watch?v=hY4vdtSXBbY