Hi there!
My first post here so allow me to introduce my car

It's 1994 BMW E36 318is Class II homologation special, sold atleast in germany and italy. 2500 produced to homologate sedan bodyshell with 16 valve engine (you guessed it, M42) to be used in FIA Class II (BTCC, STW, Italian and French national series and also in far east).
Bodykit is from factory and similar to E36 M3 GT and it was used without modifications on race cars (check the last image). I already have the riser blocks to rear wing but they are not yet installed

I use the car on wintertime when my E46 M3 is in storage (too cold and slippery to use it in Finland) and also on track during summer.
I plan to modify the engine to produce about 160 hp this summer (chip, reground cams, fan delete, throttle body modification, stiffer valve springs, lighter hydro lifters). I aim to get 180 at some point, I'm not sure what will be the exact setup yet.
Car will be lightened a bit for this summer, spare wheel and everything else on trunk will go, bike battery will replace full sized battery. Also dualmass flywheel is going to be replaced by lightened M40 unit.
I already have spare set of M42 cams and injectors with rail and E34 540i M60 MAF. I am now bidding on complete M42 head on ebay to be used as basis for mod work. I hope to put M60 35 mm inlet valves to it (will they fit? I have to order one to measure it I guess), modify inlet tract and all the valves to have 3 angle edges. Compression could be increased to around 11:1. Intake most likely will be custom job using 4 liter M60 throttle body. Lots of things to do and it will be few years before all is done I think.
I also ordered new set of wheels for summer, they are similar as in those photos but 17" instead of 16" and they are staggered setup having 225 front and 245 rear. No moer fear of oversteer on fast corners I think :p
Thank you all for a great and friendly forum, I have found lots of good advice here and I hope to post some progress reports in few months time












Whole story (almost) so far here:
http://www.jannousiainen.net/hobbies/bmw/e36_318is/index.htm