At what RPM is this shaft going to be running when under load? 100 HP through a 40 mm (1.575") shaft at 1000 RPM or higher would be no problem. It would probably be okay as low as about 500 RPM, but any lower than that could get a little dicey. Based on my experience, I would also go with a taper lock or QD style bushing to mount the pulley. Easy assembly and disassembly (usually) plus the ease with which pulley sizes could be changed. Additionally, a pulley mounted on a taper style bushing will usually run dead true. As already mentioned, the tapered bushing locks on to the shaft by squeezing down on it, with the key providing a solid lock. Despite the key being there, most of the energy is transmitted by the compressive force and friction of the bushing on the shaft.