The picture is real, but...
- wide angle lens camera
- black and white
- taken after 50 sets and a great pump
- close up
Makes a huge difference. 
That is true...there are tricks you can use when actually shooting images, lenses, lighting etc...but we definitely didn't photoshop the image.
Like I mentioned before, why would we alter the image of someone as well known as Arnold, in a photo that can easily be compared to other photos from the same time period...we ran the image because it was impressive...we didn't alter it so that it would be.
Chest to waist ratio is pretty insane...who do you guys think is comparable now? if anyone?
C