The posed question is very close to questions on the existence of circulant Hadamard matrices and the nonexistence techniques of that theory should suffice.
Suppose $W$ is a circulant weighing matrix $CW(512, 16^2).$ Then we may view $W$ as an element of the group ring $\mathbb{Z}[G]$ where $G$ is the cyclic group of order 512. The coefficients of $W$ are in the set $\{-1,0,1\}.$
Any character $\chi$ of the cyclic group of order 512 gives the equation
$$ \chi(W)\overline{\chi(W)} = 16^2.$$
Now $\chi(W)$ is an element of $\mathbb{Z}[\zeta]$ where $\zeta$ is a primitive 512-th root of unity.
In the algebraic number ring $\mathbb{Z}[\zeta]$, the ideal (2) factors as $(1-\zeta)^{256}$ and so $(16^2)=(2^8)$ factors as $(1-\zeta)^{256\cdot 8}$. But these ideals are fixed by conjugation, so $(\chi(W))$ is the ideal $(1-\zeta)^{256\cdot 4} = (2)^4.$
One can show that with respect to the standard integer basis of $\mathbb{Z}[\zeta]$, all the elements of $(2)^4$ have coefficients divisible by 2 (indeed by 16.) Since the minimal polynomial of $\zeta$ is $x^{256}+1$, one can then write $W$ in the form $a(x^{256}-1)+2b$ where $a, b \in \mathbb{Z}[G]$ and get a contradiction to the claim that the coefficients of $W$ are just from $\{-1,0,1\}.$
A comment: I always find the algebraic number theory a little tricky (and have made several edits to tighten the explanation) but the number theory is relatively "easy" if we are in a group of order $2^k$. The algebraic number theory quickly gets complicated if several primes divide the order of the group.