Thanks for the welcome.I find it a great car
plenty of power (well for a while anyway).
Just watch out for the nikel problem in the block just make sure the car is idling smoothly or to be safer just do a compression test on it.
I havent had a bit of trouble from it since i bought it about 3 months ago had a 318i before that.
Mines a 96 coupe no m-tec kit.At the moment i have it lowerd with h+r springs 17in masitaly 5 spokes,scorpion stainless steel exaust and front eyebrows.Im waiting at the moment for zeemax front and rear bumpers,gt class doublespoiler,m3 mirrors and clear lights all round.
ill post a pic soon.
Mines a 318is coupe,half leather interior,full m3 bodykit and alloys.I've not done much to it since I got it last June except I put a piper x air filter in it and it made a slight difference in the poke.
I've been reading about the nikel problem in the 6 cylinders but do BMW not sort that problem for you??
There a few images of my car on the web link below.
The problem that some of the cars have is only related to the 1997 6 cylinder cars - 323i and 328i, amn't sure if the M3 is included. Its the nikasil bore issue - basically the block deteriorated rapidly afaik, and the engine lost compression and then died!!
All the cars of this year had an engine replacement by BMW under warranty... its the first thing to be checked when buying a 97 car...
Speaking of which, had a 97 323i for a test drive that one of the boys in Joe Duffys owned - they did the replacement themselves and a bit of fine tuning too... they reckoned the car was kicking out 190BHP ballpark!! Felt very very fast, €17K if anyones interested 
The nikal prob was from 96 to 98 i think.I dont know if mine has been done or not but most were.
@Rochey all is wrong with ur car is that ur idle control valve is gone try cleaning it first as most of the time this works.This idle problem happens to all 316's and 318's with the m40 engine.
also do u know what fine tuning they done to that 323
I'm not actually sure what they did with the car to get the extra power - he mentioned that most of the detuning that was given to the 323i was ECU based, so I'd imagine they had a play around with that. If you're getting your own done I'd recommend a Dastek Unichip...
Hey Shoca - welcome aboard. Its quiet around here at the moment, but hopefully we'll get a few more people joining up soon.
You were thinking of drifting with your 323i if I remember correctly? The panel filter and exhaust are a good start for the car - the 323i really benefits from these. To be honest, there'd be a lot of other things I'd spend my money on before going for a LSD, but it depends on what you want out of the car I suppose.
@Shoca - if you are going to be doing a lot of drifting, look into getting a different Oil Sump with more Baffles and possibly increased oil capactiy - nothing worse then going sideways, with all of the oil to one side of the engine, and the car choking