You're probably in the market for an M50 swap. I'd go for the later aluminum block M50TU2. You could easily get 250 out of that motor with a chip, lightened flywheel and exhaust mods. It wouldn't be that cheap, but it'd go like a scalded cat. That engine has double-VANOS too, BMW's VTEC.
Later engines like the N52 are even lighter...that's my eventual plan right there...