Cosmodragoon,
I wish I could find the original video. I'll have to search the other computer to see if maybe I was able to capture it. IIRC the goal was to produce a cartridge in .32 caliber (i.e. using existing bullet stocks) that was nearly as powerful as the .357 Magnum with less recoil and less of the nasty snot-loosening blast and concussion of the .357 Mag suitable for use in a personal defense revolver.
So going into the project, they knew it would have to produce high velocities out of a short-barreled revolver. They made it sound as though Ruger helped by providing the 3-inch SP-101 (3-1/16" nominal) which was chosen for it's solid construction. Whether that was done as a custom build or they provided an SP-101 in .32 H&R for Federal to ream out, I don't know.
Again, from memory; The Federal team experimented with some customized blended powders and found that they could push .32 caliber pill up to 1400 fps while keeping chamber pressures within reasonable limits. Apparently this was an issue early on with some powders used in test rigs. Some of their conventional powders produced pressure readings considered to high for practical use.
More work was done for accuracy and then again to add flash suppressants. The final product met their goals of producing true magnum performance from a snub gun while keeping recoil manageable for those who are intimidated by the .357 Magnum.
The round is "optimized" for the 3" barrel as it needs that length to build up enough steam to produce the 400-500 ft-lbs energy range from a short 3-inch launcher.
Opinion: Given the pressure limitations -- see reference list below -- the .327 Federal performs as well or better than the .357 Magnum from a short barrel. This satisfies the goal of making a small carry/protection gun with less recoil. And the "bonus" of a sixth round in the "J-frame" sized package. It's not perfectly optimized, of course, because there is some powder that burns outside the muzzle. Capture this powder in a longer barrel and it gives you some excellent ballistic results for a small cartridge.
SAAMI Cartridge Max Pressure Specs
9mm Luger.......... 35,000
9mm Luger +P....... 38,500
32 S&W Long.........15,000
32 H&R Mag......... 21,000 cup
357 Magnum......... 35,000
357 Maximum........ 40,000
10 mm.............. 37,500
41 Magnum.......... 36,000
44 Magnum.......... 36,000
Specifications are in PSI except as noted.