Now I enjoyed that post.....
We all have those kinds of stories. I think we're all numb to exhaust pipes sliding off though, it happens pretty regularly.
Motor sounds really good....
You are correct in your write-up on how the dyno is loaded. That procedure varies a tad bit depending on how finicky the engine is, where the peak torque curve will be, etc. You are basically loading the engine down to the point where it's doing all it can do at WOT...then you back off the water and let it accelerate.