bimmerlover,
Well the 318ic weighs about 125lb more than the M3 so your drop will be a bit lower than the drop on a 325is with M3 springs. What are you going to use the car for daily driver, track etc. Then reason I ask is I would be concerned about how the weight distribution on the 318ic differs from the M3. If there is a significant difference your may run into handling issues.
That is why I bought the Sach sporting-set . There is only a 20mm drop and the shocks are designed for the springs and car. I got them whole kit from BAV-AUTO for 400 on clearance.
Anyways to answer your question, I don't know which shocks to use. I a would call turnermotor sports and a few other shops and get their opinion.