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That's pretty cool! I've always been fascinated by miniature engines. I also lvw the little working model steam engines. I went through an RC phase years back and was amazed at the amount of power those little nitro engines can produce. 3 hp out of something that weighs less than a pound is just ridiculous.
I didn't have the sound up when I watched the video so I don't know if it's a working engine or not. I would imagine it is and the manual cranking was just so it was slow enough to see the detail of the valves moving and such.