A 700 improver can make in the 190's for hp. I have never done one, but I would expect a race 780 would be in the 200-205 range for hp.
For reference, my pump gas, ported 780 makes 181hp on the dyno, with Bender 835 trail pipes and 38mm carbs. With the porting in it, it should probably be 185-186ish, but there is too much blow down time in the porting, causing the motor to be a bit peaky. I am going to fix it this year, and port it slightly more to see if I can get into the 190's on pump fuel and low rpm.
As for being disappointed, it all depends on the port work done on the cylinders, pipes, carbs, compression, etc. There are alot of 780's out there with basically no porting, and they are probably only making 160hp at best.