Interesting. Did you get rid of the COP conversion, or is the BMW placard just on the valve cover to keep junk out of the plug holes?
126RWHP with a chip sounds about right. I dyno'ed my first 318iS back in 2003 with just a Conforti chip (and cheesy CAI + super sprint exhaust) and the dynojet said I laid down 131RWHP. My second one, with the same mods in 2006, put down 121RWHP. Once you get the engine management sorted out and tuned, I bet those cams will give a nice bump in the high end.
How are you going about the VEMS installation? Did you find a Motronic harness adapter, or are you going balls-to-the-wall and chopping it up?
Good questions. I actually took the COP plugs off because I thought they were a PITA to get on and off. Im switching back to wires and an M44 coil pack located on the firewall somewhere. Honestly, I just really liked the look of the little spark plug cover and I couldn't fit it with the COP. Yeah, lame reason, but for some reason I really like the look of the motor with the cover. M44 coil is like the M42 individual coils all in one pack so its smaller and easier to fit, also much less wiring and an idiot proof round plug.
I may regret my decision later and revert back to the COP style coils. I'm keeping all the stuff so I can revert back if I need to

I started with a Motroinc harness adapter made by a friend, but then I decided I did not like having the "extra" harness in there as its another failure point. It also made it difficult to mount the ECU in the OE place due to another harness coming off the old harness. Then I decided to wire the inject sequential, add knock control, ECT and I decided just making a new loom would be easier. I chopped the Motronic connector off and used the wires from the OE engine harness where I could.
Lots of "unnecesary" work, but I hate electrical gremlins and I thought this would be a nice way to get a clean looking install...and one thats easier to troubleshoot. Over time I have learned the cleaner your engine is and the more organized everything is...the easier it is to troubleshoot and the less problems will go unnoticed among all the clutter.
I dyno'd my car last year on stock bottom end with VAC 279/276cams and SS valves 2.5" exhaust(precautionary) and a WAR Chip(PITA to tune with the factory AFM), numbers were 142rwhp and about 128lb-ft at 2400lb elevation 90+deg ambient on a dynojet. So at sea level I'm probably making north of 150rwhp.
Awesome results! I really think cams and a retune are the keys to unlocking power in these motors as your results show.