Very small nuclear-powered engines are possible. There were several launched on space satellites by the US and USSR, i.e.
http://www.etec.energy.gov/history/Major-Operations/SNAP-Ove...
http://en.wikipedia.org/wiki/Kosmos_954
SNAP weighed under 430 kg for the entire power system (note this is a real fission reactor, not a radioisotope heat source like many space probes). These use highly-enriched uranium (weapons grade) to get very small cores.
Nuclear reactors have been proposed for interplanetary probes, such as the (recently cancelled) Jupiter Icy Moons Orbiter, which would have used a nuclear reactor powering an ion thruster. It's completely viable.
http://nssdcftp.gsfc.nasa.gov/miscellaneous/jupiter/JIMO_Bac...
http://en.wikipedia.org/wiki/Aircraft_Nuclear_Propulsion
tl;dr They discovered it was a bad idea.
I can't comment on the difficulty of building a nuclear engine weighing 227kg (I assume he means 250kW), but I would have thought the space industry would be the first to utilise such a breakthrough, and I'm not aware of the widespread adoption of those engines over solar panels.
If these challenges are met then such an engine could be a viable alternative to the batteries in electric cars.