Spliffy, can you easily acquire an M42?  I'm not sure how common the motor is in South Africa.  Might be that the M42 head fits right on your M40 block...
You do get some other great cars we didn't, that's for sure.  If there are any 333i's left let me know.  I always thought the Ford Sierra XR8 was a fine idea that we should have had here.
Good day Dave
Luckily the M42 was in all the E36 318i's (E36 318is came with the 1900cc either M44 or M43) so just have to look for 1 with low mileage or a reconditioned 1. I've read that the head doesn't fit the block 100% although I haven't checked it out for myself yet. The other thing is that the E30 M42 ECU isn't here in SA so I'm researching stand alone management systems(something i still know very little about). But there's lots of info on this site that I read through and it helps alot.
I've been unlucky not to have driven in an XR8 or 333i yet. Saddening I know, and where I live Cape Town there are very few 333i's left, e30clusa.co.za is my home forum and we had a BMW fest/track day recently and there wasn't 1 333i. Another favourite is the 2.7litre 325is with the mtech2 kit, love that car! Sorry 'bout this long post!
Looking forward to my next visit!
Kind Regards:)