Don’t look down on the Crosley automobile. Small as it is, it has an engine of surprising capabilities. Officials at headquarters of the New England National Sports Car Races here are marveling at reports of a recent Italian creation, the Nardi sports car, which uses a basic 27 horsepower Crosley engine souped up to 42 horsepower. Designer Enrico Nardi, in Torino, Italy, says the engine has not yet reached its power peak, and additional improvements will be made. Although the Nardi’s engine is small compared to the power plants that will drive cars along Westover runways at 160 miles-per-hour plus on June 13, the car has a low power-to-weight ratio, and reportedly has excellent roadability and cornering characteristics. Mr. Nardi says he plans to build a coupe model as well as a competition car, probably offering a choice of the Crosley or Dyna Panhard engine.